JPY

Currency markets remain fundamentally directionless this morning as traders batten the hatches ahead of tomorrow’s US inflation report. The DXY dollar index is modestly softer, dragged lower by an incremental decline in Treasury yields, and equity futures are setting up for another day of sideways movement. Oil prices are lending the Canadian dollar some support, with both major benchmarks rising as tensions in the Middle East ratchet higher. Houthi rebels based in Yemen fired eighteen drones, two cruise missiles and a ballistic missile at shipping in the Red Sea during European trading hours, adding to the likelihood of an assault...

The dollar is performing in a mixed manner relative to its major rivals this morning as risk appetite fades amid a lack of definitive trading narratives. Investors are taking dovish comments from the Bank of Portugal’s Governor with a huge helping of salt. The euro-dollar exchange rate remained effectively unchanged after Mario Centeno told an interviewer “I don’t think we have to wait until May” to make a decision on cutting rates, “I don’t see any sign that second-round effects on wages have materialised or will materialise or that wages will put additional pressure on prices”. Odds on the European...