USD Pares Early Losses, JPY Struggles

The majority of the major G10 FX/USD crosses hover around neutral levels at typing, with the aforementioned hold in EUR/USD at $1.1300 and the uptick in U.S. Tsy yields lifting the broader USD away from its early Asia-Pac session lows.

• Local data had no impact on the AUD, NZD, nor the JPY. While USD/CNH has extended lower in the wake of stronger than expected official Chinese PMI readings and an in line with exp. USD/CNY mid-point fixing, but the cross remains within the recently observed range.
• The uptick in U.S. Tsy yields and a regional focus on Monday’s recovery in U.S. equity markets (and a subsequent rally in the Tokyo indices) has seemingly allowed the JPY to move to the bottom of the G10 FX table. Note that Monday’s high in USD/JPY remains intact.
• Flash Eurozone CPI data, the latest MNI Chicago PMI reading from the U.S. & Canadian GDP headline the remainder of Tuesday’s economic docket. Elsewhere, comments from Fed Chair Powell on the Hill (his initial pre-released remarks were cautious, in the wake of the Omicron COVID developments) and ECB speak from Villeroy & de Cos will also garner attention.