USD index lower gradually with Nikkei lower down to -0.65% and the falling of 10 years UST yield (10 years UST yield 2.843%) driven more selling on USDJPY as the JPY cross leading higher on other majors which hurting the USD in Asian session. Kuroda’s speech from earlier in which nothing much special with only repeating the unchanged policy and holding ETF amount only to 3% of market share etc. which led more trend continuation effect with USDJPY technically breaks 108 and be will pointing to 107.32 (Sept 2017 low) retest.
EUR grids higher with the steady EUR cross demand and more investment house issue for long EUR strategy on medium term basis in macro and technical view. In ECB not targeting the exchange rate but the concern is on US political for the exchange rate as it will still add some cloud for broad USD move and overall EUR base building for higher retesting will remain valid.
GBP in choppy swinging as it is going lower overnight but some short covering on 1.3800 handle will still supporting the pair. Today the UK retail sales , PPI and CPI data will have some intraday impact for GBP and GBP cross action.
Commodity currencies (AUD/NZD/CAD) slightly higher in response to the USD weakness in Asian session. But the overall move are slow and orderly as the short term will still follow the broad USD direction.
Today the US Jan NFIB Business Optimism Index and stock/bond market move as well as Fed’s Mester speech will dominate the intraday action in ahead of tomorrow key US inflation data announcement.