USD On Softer Footing In Quiet Asia-Pac Trade

Most major USD crosses were happy to hold tight ranges in Asia-Pac hours. The greenback lagged all of its G10 peers at the margin and the DXY ebbed lower, but remains poised for its largest weekly gain in months, after this week's hawkish message from the FOMC.

• The yen was eyed for any signs of reaction to local catalysts, but it hugged a narrow range. Japan's CPI figures fell broadly in line with expectations, with the core metric of consumer prices edging higher for the first time since Mar 2020. The BoJ left its main monetary policy settings unchanged, signalling that it is working on a new measure re: climate change.
• The PBOC set their central USD/CNY mid-point at CNY6.4361, just 5 pips above sell-side estimate, in the fourth weaker than expected fixing in a row. USD/CNH pulled back from Thursday's peak. The Securities Times noted that redback volatility may increase in 2H2021.
• UK retail sales & German PPI headline the European docket. Some U.S. institutions will be closed in observance of Juneteenth National Independence Day, but financial markets are set to remain open.