Themes

• General mood is “risk off”
• U.S. Initial Jobless Claims weaker at 286k from 220k talk
• U.S. Existing Home Sales (6.18mln) softer; Philly Fed (23.2) stronger

What’s Moving

New York opened with a small bid, as an easing in U.S. yields and better U.S. equities supported dollar buying out of the chute, but the upside stalled mid-morning and most markets retraced earlier gains to finish near flat.

After the market closed in the U.S., Treasury Secretary Yellen said that inflation will ease this year if the pandemic can be controlled. This should keep a lid on USD gain into Asia today.

Thoughts

With little incentives from overnight trade, expect a usual quiet Friday in Asia today. Yellen’s comments should keep a lid on USD gains and tight consolidation is expected.

The data and event calendar is light today, with little more than:

• Japanese National Core CPI (E: +0.6%)
• Japanese Monetary Policy Meeting Minutes

Pivot Points