Another Fresh YtD High For The DXY

The USD bid extended a touch in the final Asia-Pac trading session of the week, with the DXY registering a fresh YtD high in the process, as the fallout from Wednesday's firmer than expected U.S. CPI readings continued to permeate. U.S. Tsy yields moved higher after the Veterans Day holiday closure on Thursday, although now operate back from best levels.

• JPY struggled, as you would expect under such a backdrop. USD/JPY prints at Y114.25 as we move towards London trade, a handful of pips shy of best levels and 20 pips firmer on the day. Bulls need to take out key resistance in the form of the October 20 high (Y114.70) after a bullish engulfing candle (formed Wednesday) helped tip the scales in their favour from a technical perspective. Still a $2.2bn cluster of options with strikes of Y113.90-114.00 are set to roll off at today's 10AM NY cut, which may provide a degree of magnetism if further upward traction is not forthcoming before then.
• The commodity dollar bloc also struggled, with oil on the defensive. It was the NZD that found itself at the bottom of the G10 pile as the NZD/USD cross looked below $0.7000 for the first time since mid-October.
• USD/CNH was steady, with nothing in the way of market moving information divulged in the post-CCP plenum press briefing. The USD/CNY mid-point fixing was bang in line with broader market expectations.
• There isn't much in the way of notable risk events on Friday's docket. Eurozone industrial production and the latest UoM sentiment survey from the U.S. headline, while NY Fed President Williams is set to speak (topic: heterogeneity in macroeconomics).