ECB meeting is on the agenda. Will the EUR get weaker?
Japanese yen drifts away from two-week maximum
On Friday, the Japanese yen drifted away from a two-week maximum versus the evergreen buck after North Korea told that it was still open for negotiations with the United States.
Although safe assets such as the Japanese yen and the Swiss franc rallied on Thursday in response to rising political tension after US President Trump told that his meeting with North Korean leader Kim Jong-no, initially scheduled for June 12, might not take place.
The US leader accused North Korea of canceling the negotiations and told about Pyongyang's open hostility. He also warned that the US military was ready to respond in case of any reckless actions by North Korea.
However, after North Korea stated that it was open for talks during the early Asian trading session, the risk of worsening sentiment dived a bit.
The Japanese yen slumped at the beginning of Asia trade after peaceful comments by North Korea's Deputy Foreign Minister Kim Ki Gwan.
Also, the weakening of the Japanese yen, to some extent, was caused by weaker than anticipated inflation data in the Tokyo region.
As the Japanese government informed, inflation in the Tokyo region, excluding the price of fresh food, also known as basic inflation, tacked on by 0.5% in May, compared with 0.6% per annum in April.
Now the figure is at the lowest value since September last year, questioning the probability that inflation will ever be able to hit the Bank's 2% annual objective.
Excluding prices for fresh food and energy, inflation in the capital went up by only 0.2% during the year, again below the 0.3% level demonstrated a month earlier.
Besides this, initial inflation, including all positions, tacked on by 0.4% compared to the previous year, which is below the 0.5% reading published in April.
The news that opposition lawmakers plan to stop Boris Johnson to leave the European Union without a deal increased the political uncertainties in the UK.
The level of non-farm payrolls (NFP), also known as non-farm employment change will be published on September 6, at 15:30 MT time.
Pay attention to the FOMC meeting, where the rate cut is expected. Also, it is recommended to keep an eye on the oil prices, updates on trade talks between the USD and China and, of course, Brexit.
The retail sales for the US in focus today
During today's Turkish central bank meeting, the market anticipated a rate cut between 200-300 pips.