The lack of key fundamental data has helped extend the pullback in the USD and JPY against major currencies, which remains no more than a corrective move w/in an impulsive rally in USD and JPY. Sterling is also among the underperformers of the day, dragged by expectations of renewed QE. Wednesdays BoE inflation report could show a GDP downgrade and reiterate the case for fresh asset purchases. Any rebound in GBP could see it capped at $1.5670. CADJPY is seen amid the few yen crosses likely to garner fresh gains ahead, eyeing resistance at 84.00, with USDCAD vulnerable to retesting 1.0650.
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