BOJ Ueda throws cold water on Yen | FX Research

Investors have been less and less affected by President Trump's talk on trade, something that has helped to bolster risk appetite and open a wave of US dollar outflows. Currencies and broader risk markets have also been feeling better about a possible peace deal between Russia and Ukraine, though clearly, there's still a lot more work that needs to get done here.

There have been some out there talking of dollar weakness also coming from the dollar bearish implications of a US sovereign wealth fund that would invest in global assets and diversify away from the US dollar.

Moving on, today's weakness in the yen is notable as it comes after Japan inflation data was hotter than expected, which should have generated yen demand. Yet, it was the BOJ governor who threw cold water on the yen after saying the central bank stood ready to increase government bond buying if long-term interest rates rose sharply.

Elsewhere, Aussie PMI data ticked up, adding to the case for no more RBA rate cuts, which helped to extend Aussie's run to a fresh yearly high against the buck.

Looking ahead, we get UK retail sales, German, Eurozone, and UK manufacturing PMI data, Canada retail sales, US existing home sales, Michigan sentiment, and some Fed commentary.

Exclusive FX research from LMAX Group Market Strategist, Joel Kruger