JPY Underperforms Weaker USD Backdrop

The USD is lower, with the BBDXY back to 1321, moves up towards 1325 faded by the market. We haven't broken back strongly back below the simple 50-day MA though (1320.82). JPY has lagged the broader USD sell-off as the BOJ held steady.

• USD/JPY was volatile around the BoJ announcement, spiking towards 147.00, before slumping back to 146.00. As expected, no major changes to policy parameters were announced, while inflation forecasts were revised higher, but remain comfortably sub 2.0% for next financial year. The pair last sits around 146.25.
• EUR/USD has firmed back towards parity, last 0.9985. An initial catalyst was lower UST 2yr yields, which dipped below overnight lows, but EUR has held gains even as yields recovered (last 4.30%).
• NZD/USD has outperformed, up 0.60%, although has seen selling resistance above 0.5870. NZD/USD has lagged, up +0.30% to 0.6470. Fresh declines in iron ore (sub $80/tonne) not weighing materially. Both currencies though have outperformed the weaker tone from US/Regional equities.
• Coming up, German NRW CPI is still yet to print, while economic and industrial confidence will print for the Euro area. In the US, the main focus will be on the PCE deflator, along with U. of Mich Consumer sentiment.