The yen is slightly on the back foot to start the new week
Markets are a little quieter to start the week as the landscape starts shifting towards focusing on central bank rhetoric over the next two weeks. Asian equities may be a little weaker but Treasuries and US futures are barely changed on the day, reflecting a more steady and indecisive mood among market participants.
The yen and franc are a little weaker in the currencies space but it isn't telegraphing much of a change in sentiment for the time being. USD/JPY holds close to the 108.00 handle for now and that will be a key level to watch out for in the sessions ahead.
Of note, there is a $3.4 billion expiry at the figure level rolling off on Wednesday so that could help to limit price gains over the next two days.
Meanwhile, the kiwi is continuing its good form from last week as it pushes higher once again with NZD/USD looking to break daily resistance around 0.6774-83 currently.
Other major currencies are more subdued as they trade little changed against the dollar to start the day. The main focus for markets is still on the Fed as that has broader repercussions so we could still observe some choppy trading in between now and then.
Also, this week we'll get CBRT and ECB monetary policy decisions so keep an eye on those two events schedule for Thursday. That will hold more significance for emerging market and euro assets as we navigate through the week.
