Yen Still On The Back Foot, PBOC Retains Weak Bias In Yuan Fixing

Oil-tied FX space shows some weakness in response to renewed losses in crude futures. The Antipodeans and Canadian dollar are among the worst performers in the G10 basket, while NOK has managed to remain afloat along its Nordic peers and the euro.

• There is no sign of reprieve for the yen, which sits at the bottom of the G10 pile. USD/JPY has extended gains to fresh cycle highs as U.S. Tsy yields continue to creep higher. Japanese FinMin Suzuki pledged to closely monitor the impact of weak currency on domestic economy and stressed the importance of stability in the FX market.
• The PBOC retained its weak bias in daily yuan fixing, signalling preference for further depreciation of the redback. The USD/CNY reference level was set at CNH6.3760, 129 pips above sell-side estimate. Spot USD/CNH reversed its initial losses and showed above the CNH6.4000 mark for the first time since Nov 11.
• China's economic activity indicators will hit the wires at the top of the hour, before focus turns to U.S. PPI data & Empire State Manufacturing, UK jobs market report, German ZEW Survey & final French CPI. ECB Pres Lagarde will give a speech at WELT Economic Summit.