The yen is the notable mover in the major currencies space today as we see a further retreat in USD/JPY after briefly clipping 125.00 in trading yesterday. I've highlighted how the figure level can act as a natural resistance and it is proving to be the case, with talk of yen repatriation flows also perhaps in the works.
For now, USD/JPY is down 0.4% to 123.40 but the chart continues to allude to buyers keeping in control.
Elsewhere, stocks had a decent showing yesterday and US futures are looking calmer today. Meanwhile, the bond rout continues to play out with 2-year Treasury yields now up 3 bps to 2.415% and 10-year yields up slightly to around 2.481%. The 2s10s inversion is looking more and more inevitable as the days go by.
For now, the focus will stay on the yen and the bond market for the most part. Oil managed to turn a few heads amid a sizable drop yesterday but the volatility isn't anything new in my view. The range in play for oil remains around $95 to $125 so I wouldn't look too much into the in between at the moment, even though I'm still an oil bull in the big picture.
0600 GMT - Germany February import price index
0600 GMT - Germany April GfK consumer sentiment
0645 GMT - France March consumer confidence
0830 GMT - UK February mortgage approvals, credit data
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
