Sentiment Sours

The risk switch flicks to off, with traditional safe havens gathering steam as a result. The yen turned bid as Tokyo liquidity picked up and regional participants reacted to the move lower in U.S. Tsy yields in Thursday's NY hours & post-settlement headwinds to U.S. e-mini futures, linked to poor results reported by Snap Inc.

• Japanese national CPI figures fell in line with expectations, with core prices posting the biggest one-month increase since Sep 2008 (when adjusted for the sales tax hike impact). While core CPI growth is above the BoJ's target of +2.0% Y/Y, the Bank continues to stress that current price pressures are being driven by supply-side factors rather than demand-pull matters.
• The commodity-tied FX bloc underperforms, with the Antipodeans pacing losses. Regional risk barometer AUD/JPY has shed ~30 pips so far, extending its pullback from multi-week highs printed last Wednesday.
• Manufacturing PMIs from across the globe will keep hitting the wires going forward, other data highlights include UK & Canadian retail sales. Comments are due from ECB's Villeroy.