The US dollar is broadly firmer. The rise in US yields yesterday has seen the greenback extend its recovery against the yen. It briefly pushed through JPY112.40, after dipping below JPY111.00 at the start of the week, for the first time since mid-September. Since the end of last week, been capped at the 200-day moving average against the yen, found near JPY111.70, but yesterday it pushed past. There are nearly $1 bln of options struck between JPY112.20-JPY112.65.

The euro was initially firmed in Asia but ran out of steam in front of yesterday’s high near $1.1880. Although there was some positive economic news, like the larger than expected decline in German unemployment (-18k), and the eurozone unemployment fell eased to 8.8% from 8.9%. However, the market took its cues from the disappointing inflation figures.