JPY in Demand Despite Equity Market Progress

Despite the uptick in US equities Friday, haven currencies were in demand, prompting JPY to climb to the top of the G10 pack. USD/JPY made decent progress below the Y105.00 handle as markets further reversed the reflation trades placed at the beginning of the week. Despite the JPY strength, however, the week's lows are yet to be tested at 103.19.

GBP traded well, but GBP/USD failed to make any meaningful attempt on the 1.32 handle, with near-term Brexit risks still clearly the driver. Some saw the departure of key PM aide Cummings as paving the path for a smoother Brexit deal, keeping attention on forthcoming Brexit negotiations in the coming week.

USD was mixed, with a lack of key drivers Friday. Data was ineffectual, with the October PPI report mixed.

The upcoming week sees the frequency of tier 1 data pick up, with industrial production & retail sales numbers from China & the US, UK & Canadian inflation and Australian jobs numbers. Speeches from various ECB, Fed and BoE members are due throughout the week.