FX Update: The dollar saw to a six week high against the yen,
FX Update: The dollar saw to a six week high against the yen, as goodwill gestures from both the U.S. and China on the tariff front lifted risk appetite. The yen continued to see its safe-haven premium deflate. USD-JPY is trading over 108, in what is now a fourth consecutive day of ascent, which in turn amid a third consecutive week of gains. AUD-JPY and GBP-JPY also continued to rise amid general strength in export-driven currencies amid the buoyant mood on the trade front. News that the hawkish U.S. national security advisor, John Bolton, was followed by announcement of delay or suspensions of new tariffs from both the U.S. and China, which has rekindled new hopes of a trade deal down the line. Elsewhere, both EUR-USD and Cable remained in narrow ranges. U.S. CPI data are due today and retail sales out tomorrow and analysts expect an ongoing benign price picture 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. For the EUR, the focus is on today's ECB decision, which comes with updated staff projections and is expected to bring at the very least a cut in the deposit rate and dovish guidance and while expectations for asset purchases have been scaled back the event risk remains that the package of measures will fall short of what markets have been pricing in. For the GBP it remains all about Brexit headlines.