Japan returned from holidays to witness a.....>

FOREX: Japan returned from holidays to witness a defensive start to the session,

but risk aversion gradually dissipated. A strong trade surplus reported by

China, driven by a solid beat in exports, as well as upbeat reports surrounding

Kao & Kitasato University's research into a drug for Covid-19 helped generate

risk-on dynamics across the G10 FX space. The Antipodeans were bid, with

Australia reporting the widest trade surplus on record. JPY was poised to snap

its four-day winning streak vs. USD, while the greenback also struggled.

- Sterling was the worst performer in the G10 basket. It took a beating as

participants positioned ahead of today's monetary policy decision from the BoE.

The Norges Bank also announces its rate decision later today.

- USD/CNH gave up initial strength and sank into negative territory, while

USD/KRW trimmed its opening gains on the back of aforementioned developments.

Singapore, Malaysia & Indonesia observed public holidays. 

- U.S. initial jobless claims, as well as German & French industrial outputs

take focus today. The speaker slate features ECB's Lagarde & de Guindos, Fed's

Bostic, Kashkari & Harker, Riksbank's Floden & BoE's Bailey.