G10 Limits Post-CPI Losses, Gradual Yen Strengthening

USDJPY has continued to trend lower towards 150 after senior currency officials warned that they are prepared to intervene. It is currently down 0.2% to 150.44, close to the intraday low. The USD is down slightly during APAC trading with the G10 stronger against the greenback.

• USDJPY weakened to 150.89 following the higher-than-expected US CPI data which drove the BBDXY USD index 0.6% higher. This has prompted officials to talk up the yen today warning that “authorities are ready to respond 24 hours a day, 365 days a year”. Tomorrow Q4 GDP prints.
• AUDUSD is 0.1% higher at 0.6462, close to the intraday high of 0.6464. It fell to 0.6446 early in the session. AUDJPY is down 0.1% to 97.22 and AUDNZD is -0.1% at 1.0641. On Thursday RBA Governor Bullock appears before the Senate economics committee and employment data is released.
• NZDUSD has trended higher today after falling sharply on Wednesday. The pair is up 0.2% to 0.6073 but is still well below yesterday’s highs.
• Asian currencies are generally weaker with USDKRW down 0.6%, USDPHP -0.5% and USDTHB -1.0%. Onshore IDR is not trading due to the holiday for the election.
• European currencies continue to be little changed against the USD today.
• Later the Fed’s Goolsbee and Barr speak as well as BOE’s Bailey, ECB’s de Guindos and Cipollone. There is no data in the US but UK January CPI/PPI and euro area Q4 preliminary GDP/employment and December IP print.