From Marc Chandler at Bannockburn Global Forex:
The US dollar is mostly slightly firmer against the most of the G10 currencies but largely confined to its recent ranges. The yen is the notable exception. Beijing announced it is sanctioning more Japanese companies with military ties and put others on a watch-list, which no doubt will have a cooling effect. At the same time, recent data shows many Chinese tourists are not visiting Japan. At the same time, a Japanese paper reporter that Prime Minister Takaichi was more strident in resisting tighter monetary policy in a recent meeting with BOJ Governor Ueda. The odds of an April hike were reduced from about 69% before the weekend to slightly less than 60% today, the least since mid-January.
The market continues to try to sort out the implications of last week’s Supreme Court decision and President Trump’s new tactic. Today’s Fed surveys, Conference Board’s consumer confidence, and house prices seem to a distraction from the market’s drivers. Half of a dozen Fed officials speak today but there is little doubt that barring a significant shock, the Fed is on hold through midyear at least. President Trump delivers his State of the Union address late today....
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