USDJPY & CADJPY, H1
The Yen has taken a tumble with global markets once again finding optimism from news of a slight decline in coronavirus cases in China, along with the stimulus measures being enacted. USDJPY rallied by over 0.5% in making a nine-month peak at 110.62. EURJPY also turned higher, breaking above its Tuesday high, while AUDJPY rallied by over 0.6% in making a two-day peak at 73.91 as risk-off positioning unwound.
USDCAD posted a two-day low at 1.3228, with the Canadian Dollar and other dollar bloc currencies outperforming amid the return of risk appetite in markets. Oil prices rallied by over 1.5%. EURUSD has traded fractionally firmer today, nudging back above 1.0800 after yesterday printing a 34-month low at 1.0785. EURJPY and EURCHF, among other euro crosses have also recouped some today, after the former yesterday hit a four-month low and the latter a near five-year low.
Sterling reversed post-data gains versus the Dollar and Euro, among other currencies. Cable dropped back to a 1.2973 low after peaking at 1.3023 following a 40-odd-pip rally in the wake of UK January inflation figures, which showed headline CPI rising to 1.8% y/y from 1.3% y/y in December, up on the median forecast for a rise to 1.6% y/y. Given the modest rise in core CPI, coupled with the 15%-plus drop in oil prices from January highs, and the abatement in the latest household income data, the data isn’t seen as having much impact at the BoE.
Ahead of the US session the day’s best performing currency is the Canadian Dollar with the Japanese Yen the worst performer.
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Stuart Cowell
Head Market Analyst
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