Forex Flash: USD and JPY sink as risk appetite revives - OCBC Bank

FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that subsiding global jitters on Tuesday saw the majors rebounding against the greenback while USD/JPY also reclaimed the 97.00 handle and tested briefly above 98.00.

Elsewhere, he adds that the dollar was also undermined by cooler than expected CPI and industrial production data readings. For today, he notes that markets are expected to look towards the G20 meeting in Washington with discussion also likely to touch on Cyprus and the yen. He writes, “As noted previously, we do not expect the G20 to be ultimately critical of Japan’s renewed efforts to revive the economy via monetary policy. On other fronts, the Bank of Canada is expected to remain on hold at 1.00% while the Fed’s Beige Book is also due.”