Yen back in favor as China data hurts appetite for risk

The soft China data highlighted risks facing the global economy, bolstering expectations for dovish outcomes at central bank policy reviews in Europe and New Zealand on Thursday. The European Central Bank is considered almost certain to ease, which in theory would be negative for the euro, but no one quite dared to position for bold action given the ECB has disappointed before. "The focal point is how long the market will attempt to price in the risk of the ECB meeting ending in disappointment.