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JPY Slips as Markets Buy Risk Ahead of Yellen Speech

FOREX

The Japanese currency is easily the worst performer so far in G10 as markets adopt a risk-on stance ahead of an appearance from the incoming Treasury Secretary Yellen later today. She speaks in front of the Senate Finance Committee at 1500GMT/1000ET and is expected to underline her plans to "act big" on COVID-19 relief as borrowing costs are close to historic lows.

In response, JPY, USD and haven currencies are weaker - EUR/JPY has snapped a seven-session losing streak to bounce back above the 50-dma at 125.66, with commodities, equities and EM currencies all trading well.

Scandi currencies are strong, with SEK and NOK the best performers in G10.

While the Yellen speech will take focus, BoE's Haldane is also due, but the data docket is thin. The Italian PM faces a senate confidence vote with unclear timing, but if the vote in the Chamber of Deputies is anything to go by, we may see results at around 2000GMT/1500ET.

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