Themes

• General mood is “risk neutral”
• USD consolidating overnight weakness in Asian session
• JPY outperforming on safe haven buying

What’s Moving

Tight ranges in Asia for currencies today, with most of the majors holding tightly within overnight ranges, after the sell-off on the Dollar.

The big exception was the USD/JPY, which continued to trade weaker in Asia. Reports are that this is on switching into the safe haven Yen after recent USD volatility and as players prefer to go into the weekend long Yen, rather than Dollars. Also helping the Yen was a Reuters article mentioning that BoJ members were debating on how soon they could start telegraphing an eventual rate hike.

Sterling is continuing to hold near recent highs ahead o the slew of U.K. data tonight that includes:

• UK GDP (E: +0.4%)
• UK Industrial (E: +0.2%) and Manufacturing (E: +0.2%) Production

U.S. data tonight sees:

• U.S. Retail Sales (E: 0.0%), and
• (Preliminary) U.S. Michigan Sentiment (E: 70)
• Fed Members Harker and Williams are also both scheduled to speak