Y121 Gives Way

There was no sign of respite for the languishing yen as rising U.S. Tsy yields helped lift USD/JPY as high as to Y121.41, a new cycle peak. The rate went offered over the Tokyo fix but promptly regained poise. The latest portion of hawkish Fedspeak served as a reminder of growing policy divergence between the BoJ and most of its major peers.

• Other yen crosses extended recent swings to fresh cycle extremes. EUR/JPY topped out just shy of the Y134.00 figure, while AUD/JPY cleared Sep 21, 2017 high of Y90.31 and soared to best levels since late 2015.
• Offshore yuan slipped as the PBOC reintroduced mild weak bias into the daily fixing of USD/CNY trading band mid-point. The gap between actual fixing and average sell-side estimate was just 18 pips but could still be treated as an indication of the PBOC's preferences re: yuan trajectory.
• The European docket will be fairly UK-centric, with monthly inflation data and the Spring Statement ("mini-budget") from Chancellor Sunak. The sterling garnered some strength in the lead-up to these events, with EUR/GBP probing the water below the GBP0.8300 mark.
• Elsewhere, EZ consumer confidence & U.S. new home sales as well as plenty of central bank rhetoric will take focus later today. The speaker slate includes Fed & BoE chiefs.