Themes

• General mood is “risk off”
• USD/JPY continues to grind higher in Asia
• AUD sees some profit-taking after overnight gains  

What’s Moving

The USD/JPY and Sterling continued their overnight rises in Asia today, although the gains were only slight and on light volume. These moves are seen as little more than the path of least resistance, with the Euro trading a very tight range against the Dollar.

The lack of local data today and dearth of clear direction overnight has seen tight ranges across the board. The upshot is that the Aussie has come back a touch after gaining in overnight trade.

Speaking tonight will be U.S. Fed Chairman Powell.

Data tonight sees:

• U.K. Headline CPI (E: 6.0%), Core CPI (E: 5.0%)
• U.K. Input PPI (E: 1.2%), Output PPI (E: 0.9%)
• U.S. New Home Sales (E: 809k)