CAD has marginally underperformed its G10.....>

FOREX: CAD has marginally underperformed its G10 peers in early Asia-Pac trade,

after struggling on Monday. The loonie is pressured by the disappointing BoC

Biz. Outlook Survey released yesterday, as well as political uncertainty

surrounding the provincial election in Alberta, due later today.

- JPY crosses ticked lower from off, but pared losses alongside the Nikkei 225,

which now trades ~0.3% higher in spite of a lower open. Japanese Trade Min

Motegi met with U.S. TR Lighthizer for the first round of trade talks today.

Motegi said that the U.S. and Japan already have an agreement on FX.

- Muted market reaction has been noted on the back of comments from Fed's

Rosengren, who noted that the U.S. economy is doing "quite well," adding that a

recession is not his base case. Rosengren also said that he favours the Fed

adopting a target inflation range that recognises the challenge of low rates.

- Price action in the G10 FX space has been tepid thus far.

- Focus today turns to RBA Apr MonPol meeting minutes (due within an hour),

German ZEW survey, UK labour market data & U.S. industrial output. Elsewhere,

ECB's Nowotny and Fed's Kaplan will provide some central bank rhetoric.