Risk-off riles markets as JPY climbs above....>

FOREX: Risk-off riles markets as JPY climbs above all others

Despite US equities managing to climb back into positive territory ahead of the

close, currency markets saw no reprieve with the JPY, CHF and EUR gaining at the

expense of the AUD, CAD and USD.

-GBP/USD briefly topped $1.39 for first time since last week as UK CPI exceeded

expectations, prompting markets to bring forward their expectations of a BoE

rate rise to 77% in May, according to MNI PINCH. The move was shortlived

however, and GBP/USD failed to hold onto the day's gains as the market sold

rallies across both GBP/USD and EUR/USD.

-USD/JPY sold off sharply in Asia alongside a poor performance for Japanese

equities, and the pair's remained well below the Y108 mark for the entirety of

the Euro/US session and holding near five-month lows.

-AUD/USD recovered sharply as CTA selling dented the pair alongside the Wall

Street open and now sits broadly flat ahead of handover to Asia-Pacific.

-Tomorrow's US CPI is the focal point for markets and price action may be muted

ahead of the release tomorrow at 1330GMT. Japanese GDP also due overnight.