EUR/JPY breaks to a two-month high as range...>

FOREX: EUR/JPY breaks to a two-month high as range finally snaps

-After weeks of low volatility and incredibly tight ranges, JPY snapped lower

during US hours, prompting EUR/JPY to show above the Y126 handle and USD/JPY

comfortably above Y111. Gains for equity markets throughout the Asia-Pacific and

European trader days filtered through to the US, with core US indices up

0.6-0.8% apiece following the delay to Trump's planned hike in Chinese import

tariffs. Lack of newsflow elsewhere (the session was particularly light on data)

helped the moves, prompting the JPY to underperform all others in G10.

-CAD had a mixed session, initially higher on the soothing of trade tensions

before slumping alongside energy markets as Trump aimed a shot across the bow of

OPEC by warning that "oil prices getting too high. OPEC, please relax". WTI and

Brent crude futures fell as much as 3.5% on the news, further fuelling stock

gains.

-US housing starts and building permits for December are due, alongside February

US consumer confidence. The RBNZ deputy governor speaks on bank capital followed

by BoE's Carney, ECB's Lane and Fed's Powell (among others).