The pair lower in Asia-Pac trade, last...>

DOLLAR-YEN: The pair lower in Asia-Pac trade, last down 14 pips at 110.15,

slightly above session lows of 110.07, a new 2018 low. MNI sources note bids

from Japanese lifers around the 110 handle. The pair hasn't been below 110 since

September 2017.

- Weakness in the pair is related to selling in the dollar, the dollar index

(DXY) briefly dropped below 90 for the first time in 3 years on Tuesday,

touching 89.974 before recovering slightly. 

- Selling is being driven by cross flows against the euro which has seen as

boost ahead of the ECB tomorrow where expectations are for a hawkish tilt, and

some optimism over the political stalemate in Germany.

- Concerns over the trade situation are also weighing on the dollar, the US

yesterday imposed sanctions on solar and washing machine imports. The

announcement was met with disapproval from China and South Korea who both said

they would protect their own interests. US President Trump will speak at the

Davos economic forum tomorrow, his comments will be watched for indications of

any future actions on trade policy.