EUR Gains As Biden Says "Unlikely" Missile That Hit Poland Was Fired From Russia

Major FX pairs have oscillated within relatively narrow ranges, with the market digesting headlines surrounding Tuesday's missile blasts in Poland. Western officials rallied behind Warsaw as it confirmed that a "Russia-made" projectile fell on its territory and killed two citizens. The country will likely request NATO consultations under Article 4 and is launching an international probe into the incident to establish the details.

• The BBDXY index has pulled back from session highs (1278.04) as U.S. President Biden said it was "unlikely" that the missile was fired from the territory of Russia, based on its trajectory. Options including a misfunctioning Ukrainian anti-aircraft missile had earlier been flagged on social media based on images of debris, albeit no definitive conclusions can be made yet.
• EUR leads gains in G10 FX space following Biden's comments, gaining chiefly at the expense of the USD. Spot EUR/PLN has now trimmed the bulk of its initial gains.
• USD/JPY has advanced amid a light uptick in U.S. Tsy yields, running as high as to Y139.91. Reduced risk of Russia/NATO escalation might be sapping some strength from Asia's chief safe haven currency.
• USD/CNH advanced as China's new home prices rout accelerated in October. The value of new residential properties fell 0.37% M/M last month, which is the fastest pace of decline since Feb 2015.
• Inflation data from the UK and Canada, U.S. advance retail sales and industrial output, as well as a busy central bank speaker slate dominated by ECB members take focus from here.