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Marginal Yen Underperformance With All Eyes On Geopolitics

FOREX

The yen continues to trade on the back foot in Asia, after overnight headline flow assuaged the fears that a Russian attack on Ukraine might be imminent. Moscow's announcement of a partial withdrawal of troops from the Ukrainian border has met with initial scepticism of both Kyiv and NATO, as they await credible evidence of the promised pullback. Still, Russia's pro-diplomacy rhetoric has taken the edge off earlier geopolitical angst. G10 currency pairs have stuck to tight ranges in the absence of fresh developments on that front.

  • Inflation data from China, the UK and Canada will be published today, with the former report due as soon as at the bottom of the hour. Other data highlights include U.S. retail sales & industrial output as well as Norwegian GDP.
  • On the central bank front, the Fed will publish the minutes from their most recent monetary policy meeting. In addition, comments are due from Fed's Kashkari, BoC's Lane & RBA's Bullock/Debelle.

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