China Matters Dominate Into The Weekend

The USD briefly benefitted from an uptick in yields, although the move was modest in nature and the major USD crosses are essentially little changed in early Asia-Pac dealing.

• The JPY is the marginal underperformer in the G10 FX sphere, with little support derived from the firmer than expected Tokyo CPI data as it isn’t expected to alter the BoJ’s ultra-easy policy settings/stance, at least in the immediate term.
• USD/CNH briefly ticked higher, with another uptick in the new daily COVID case count in China supporting the pair, before a slightly firmer than expected CNY mid-point fixing capped the move.
• ECB & Riksbank speak headline the broader macro docket on Friday, with wider market liquidity set to be thinned as many U.S. participants opt to take an elongated weekend in lieu of Thursday’s Thanksgiving holiday (note that U.S. markets will be subjected to shortened operating hours ahead of the weekend).
• A reminder that speculation/expectation surrounding a potential RRR cut from the PBoC is elevated after Wednesday's State Council meeting guided towards such a move. Many expect the PBoC to act after local market hours on Friday.