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It was a pretty light session data-wise, so forex traders mostly focused on extending yesterday’s price action.

  • Japan’s national core CPI (y/y) up by 0.9% as expected vs. 1.0% gain in March
  • Japan’s tertiary industry activity flat vs. 0.1% expected, 0.6% decline in January
  • SNB’s Thomas Jordan: No need for policy shift despite franc’s slide

Major Events/Reports:

Japan’s CPI report

Data from the Land of the Rising Sun showed consumer prices rising by 1.1% from a year earlier in March, which is lower than February’s 1.5% annualized gain and marks the slowest rate since December 2017.

The report doesn’t usually cause ruckus on the yen’s pairs, but this time the prospect of Bank of Japan (BOJ) Governor Kuroda not letting up his and his team’s easy policies supported yen-bearish trends from the previous session.

Mixed risk sentiment

Positive data and relatively upbeat remarks from FOMC officials boosted sentiment for U.S. bond yields and the Greenback yesterday.

Unfortunately, it didn’t translate to improved appetite for U.S. equities. And this time around, a grim outlook by the world’s biggest chipmaker weighed on the Asian bourses.

  • Nikkei is down by 0.11% to 22,166.4
  • Australia’s A SX 200 is up by 0.01% to 5,859.1
  • Hang Seng is down by 0.42% to 30,579.5
  • Shanghai index is down by 1.20% to 3,080.009

On the commodities front, gold got slapped lower on the back of more dollar strength, while oil prices extended their bullish run following reports of lower inventories in the U.S.

  • Gold is down by 0.23% to $1,342.45
  • Brent crude oil is up by 0.26% to $74.76
  • U.S. WTI is up by 0.21% to $68.28

Major Market Mover(s):

The yen took heavy hits on an improvement in dollar demand, which also boosted other yen crosses across the board.

USD/JPY is up by 28 pips (+0.26%) to 107.64
EUR/JPY is up by 30 pips (+0.22%) to 132.83
GBP/JPY is up by 40 pips (+0.27%) to 151.58
CAD/JPY is up by 24 pips (+0.28%) to 84.96

A lack of fresh catalysts extended Kiwi’s downfall that started during yesterday’s London session trading.

NZD/USD is down by 26 pips (-0.35%) to .7245
NZD/JPY is down by 7 pips (-0.09%) to 77.99
EUR/NZD is up by 65 pips (+0.38%) to 1.7041
GBP/NZD is up by 72 pips (+0.37%) to 1.9434
AUD/NZD is up by 28 pips (+0.26%) to 1.0654

Watch Out For:

  • 6:00 am GMT: Euro Zone PPI (0.2% expected, -0.1% previous)
  • 9:30 am GMT: MPC member Michael Saunders to give a speech in Glasgow
  • 11:00 am GMT: German Bundesbank President Jens Weidmann to give a speech in Washington, DC