JPY Continues To Struggle

A generally tight start for G10 FX trade, outside of the previously outlined move in USD/JPY, with the remaining major USD crosses trading less than 10 pips from their respective Friday closing levels.

• The space is seemingly struggling to generate much in the way of thematic/idiosyncratic traction, outside of the early JPY weakness, which has faded from extremes.
• Markets seem to be trading in different manners, with equities more attuned to the risk negative factors (most notably in the form of the ongoing Russia-Ukraine conflict, the growing number of areas under mobility restrictions in China & smaller than expected RRR cut from the PBoC on Friday, with one eye on downside risks surrounding Chinese Q1 GDP data, which will hit later today).
• Meanwhile, the uptick in oil (based on the release of Shanghai’s re-opening plan & the worry re: a European pullback from Russian energy products) has applied some pressure to U.S. Tsys.
• The Asia-Pac docket is headlined by China’s Q1 GDP reading, with March’s Chinese economic activity data also due. Looking ahead to the NY docket, we will get the latest NAHB housing market reading & Fedspeak from St. Louis Fed President Bullard (’22 voter). A quick reminder that holidays in the UK, Europe, Australia & Hong Kong will thin out wider liquidity on Monday.