USDJPY has dipped below 107.00 for the first time since November 2016, despite a lack of further risk aversion. Both forex and bond markets remain wary of potential surprises in today's US CPI numbers while equity markets are on alert for any backslide into turmoil.

• USDJPY dips below 107.00 for first time since Nov. 2016
• Quality of the break is in question given absence of risk contagion
• US CPI will be the most watched macro figure today, testing market psychology 
• Dollar-yen generally very sensitive to US economic developments
• In South Africa, it's just a question of time before Zuma goes
• Equities rebound is still not convincing
• VIX spot remains elevated and VIX futures went up
• The yield curve has been rising for the past few weeks
• Investors would likely sell of treasuries if CPI unexpectedly high