FOREX: USD Index Holding Modest Weekly Gain, Yen Ticks Lower
The USD BBDXY index sits a touch higher in early Friday dealings, last around 1268.10, which if sustained would be a modest +0.20% gain for the index this week. Yen weakness is the main focus point so far today, after outperforming through Thursday's session.
- USD/JPY was last near 149.10/15, up close to 0.25% versus end Thursday levels. Japan markets have returned after yesterday's holiday. On the topside, 150.15 is the March 19 high. Today's session high has been 149.19.
- Earlier we had national CPI data for Feb, which was a touch above market expectations. The headline and core metrics are comfortably above 2%y/y, but services inflation lost some momentum and a core metric which excludes all food and energy was fairly benign at 1.5%y/y. Hence the print may not shift near term BoJ thinking despite the headline beats.
- US equity futures are ticking up in early dealings, but only modestly. Eminis were last +0.16%, Nasdaq futures +0.25% higher. Asia Pac regional markets are mixed in the first part of Friday trade. Higher Japan markets are consistent with higher USD/JPY levels. US yields are closed to unchanged in the first part of Friday trade.
- AUD/USD is little changed, last just above 0.6300. NZD/USD is up to 0.5760/65, but still close to Thursday lows. We had Feb trade figures earlier, showing the month recorded a trade surplus, but FX sentiment didn't shift.
- There is little in the way of further data outcomes today, leaving markets on headline watch.
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