The USD has underperformed during.............>

FOREX: The USD has underperformed during Asia-Pacific hours and finds itself at

the bottom of the G10 FX pile at writing. AUD & NZD have moved to best levels as

the yuan recovered vs. USD, in sympathy with an uptick in Chinese equities.

- Risk-off flows supported JPY & CHF as TASS reported that North Korea is

mulling the suspension of denuclearisation talks with the U.S. JPY had already

recovered from worst levels on the back of the latest BOJ MonPol decision, which

lacked any notable dovish surprises. The Bank downgraded its view of exports,

industrial production & the global econ. outlook, as expected, but left its

overall view of the domestic econ. unchanged (contrary to some reports).

- EUR/USD edged higher on the broader USD weakness, with cable last operating

near unch. levels in lieu of MPs backing an extension of Article 50 yesterday.

- Focus today turns to final EZ & Italian CPI data, as well as industrial

output, U. of Mich. survey & Empire m'fing survey from the U.S. Today's list of

central bank speakers includes BOJ Gov Kuroda & ECB's Rehn. On the sovereign

rating front, notable reviews include Moody's on Italy & S&P on Portugal.