Yen Garners Strength In Asia

The yen led gains in the G10 space as reports on the looming emergency declarations in Tokyo, Hyogo and Osaka did the rounds, against the backdrop of a broader coronavirus worry. USD/JPY dipped in early trade, despite the absence of any fundamental catalysts, probing the water under Tuesday's low. The rate recouped its initial losses into the Tokyo fix, but the recovery proved short-lived and USD/JPY slipped back below Y108.00 as JPY returned to the top of the G10 scoreboard.

• The kiwi's reaction to domestic CPI data was negligible, limited to an unimpressive knee-jerk higher. Consumer price inflation accelerated in Q1, matching market expectations. The rangebound NZD/USD struggled for a clear direction, despite charting a shooting star candlestick pattern yesterday & even as the 50-DMA crossed below the 100-DMA.
• Softer oil prices applied a modicum of pressure to NOK & AUD, with the latter looking through a beat in Australia's flash retail sales.
• The PBOC set the USD/CNY mid-point at CNY6.5046, around 5 pips below sell-side estimates. USD/CNH was happy to hug Tuesday's range.
• Today's data docket features UK & Canadian inflation data. The latest monetary policy decision from the BoC will be followed by a a presser with Gov Macklem, with BoE's Ramsden & Bailey due to speak elsewhere.