The Japanese Yen (JPY) is leading gains amongst the majors, Scotiabank's Chief FX Strategist Shaun Osborne notes.

JPY outperforms following BoJ Governor Ueda comments

"The JPY is leading gains amongst the majors following comments from BoJ Governor Ueda who remarked that he had heard encouraging reports on wages at events over the new year period."

"Swaps reflect strengthening expectations that the BoJ will lift its policy rate at next week’s decision, with 18bps of tightening risk priced in, up from 10bps last week."

"Firm risk appetite is lifting EM/high beta FX, with the core majors outside the JPY lagging and posting only moderate gains on the session."