CEE: President Dan Said To Prefer Eugen Tomac As Potential PM Candidate

• Tuesday sees a moderately firmer USD, initially helped by headlines around persistent differences between the US and Iran on negotiations unblocking the Strait of Hormuz. Risk assets trade a bit weaker as a function of that but remain supported for the most part despite high oil prices, a combination which some are starting to see as vulnerable to correction.
• USDJPY stands out as it first sold off below the 159.00 mark following perceived hawkishness in the BoJ hold. During and after the Bank's press conference, the pair changed course as Governor Ueda gave few clues on the timing of further hikes, with price action also underpinned by higher core yields. In the process, USDJPY set 159.68 session highs failed to target the 160.46 bull trigger. This means for now, the pair remains in consolidation mode, with support around the 50-day EMA intersecting at 158.39 remaining intact.
• Renewed verbal jaw-boning, becoming more frequent recently, could be expected following any potential consolidation above the psychological 160.00 mark. However, the market seemingly became less receptive to respective comments from the finance ministry - and may be pushing authorities to move to action should the pair push above the current range.
• CHF meanwhile extends its relative underperformance seen over the last week, pressuring CHFJPY to temporary 201.81 session lows after some turn tactically bearish on the cross.
• ADP Weekly Employment Change, FHFA House Price Index, Richmond Fed Manufacturing, Conference Board Consumer Confidence, and Dallas Fed Services Activity are on the calendar, while ECB and Fed remain in their quiet periods ahead of decisions later this week.

Large Expiry in the EUR Today.

Of note:

EURUSD 9.38bn at 1.1700/1.1750.

AUDUSD 1.38bn at 0.7200.

EURUSD 3.41bn at 1.1695/1.1725 (wed).

USDCNY 1.36bn at 6.8000 (wed).

USDJPY 1.38bn at 159.00 (thu).

• EURUSD: 1.1650 (1.27bn), 1.1660 (282mln), 1.1675 (394mln), 1.1680 (1.31bn), 1.1685 (282mln), 1.1700 (2.89bn), 1.1725 (1.64bn), 1.1745 (1.16bn), 1.1750 (3.69bn).
• GBPUSD: 1.3500 (756mln).
• AUDUSD: 0.7125 (1bn), 0.7200 (1.38bn).