FX Update: The dollar has remained mostly in narrow ranges
FX Update: The dollar has remained mostly in narrow ranges so far today against the other main currencies, with the exception being the yen, which has continued to see its safe haven premium deflate. USD-JPY printed a fresh six-week peak, at 107.84, in what is now a third consecutive day of ascent, which in turn amid a third consecutive week of gains. AUD-JPY and GBP-JPY also posted respective six-week peaks, while EUR-JPY saw a fresh one-month high. News that the hawkish U.S. national security advisor, John Bolton, was fired by Trump has been something of a tonic for markets, maintaining buoyancy in global stock markets while sparking a 1%-pus dive in oil prices. Elsewhere, both EUR-USD and Cable remained in narrow ranges, underpinned following recent gains, but below recent highs. U.S. CPI and retail sales data are up later in the week, where analysts expect an ongoing benign price picture to be painted and a flat performance in the retail sector. While in-line data data wouldn't be a dollar-buying cue, neither should it prompt sell button reaction. Another focus is on tomorrow's ECB meeting, which comes with updated staff projections and is widely expected to see the ECB introduce further easing measures. The event risk is that the package of measures will fall short of what markets have been pricing in, because without regulatory changes there is limited room for government bond purchases to be extended significantly.