Yen Gains, Steady Trends Elsewhere

Early yen gains is the main focus for G10 FX markets in the first part of Thursday trade. A reminder that Japan markets returned today for the first trading session of 2024. USD/JPY is back sub 143.00 in early dealings around 0.30% stronger in yen terms (last 142.90).

• Japan equities have opened up noticeably weaker, which is a catch up on major index weakness in US markets since the start of the year. JGB futures haven't displayed a strong trend in early trade, while US Tsy futures are also relative steady.
• Yen strength has dragged the broader BBDXY slightly lower, last near 1223.40.
• Elsewhere AUD and NZD are relatively muted. AUD last near 0.6735, while NZD is around 0.6250, little changed from NY closing levels.
• Earlier AU PMI revisions for Dec were to the downside, but services pricing pressures looked sticky.
• Still to come is the Caixin services PMI in China, although this is unlikely to be a major market mover.