• Yields rose across all tenors in response to the US economic data, with the rate on benchmark 10-year bonds rising to 4.08%
• Minutes of the January FOMC meeting revealed that several central bank officials indicated they “would have supported a two-sided description of the committee’s future interest-rate decisions”

NZD/USD tumbled 1.4% to 0.5963 as investors scaled back expectations of RBNZ rate hikes
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RBNZ Governor Anna Breman said the central bank is not planning to raise rates until they see more inflationary pressures and a stronger economy

USD/JPY jumped 1% to 154.77, fueled by the dollar’s rally
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Monex’s Andrew Hazlett said the yen’s weakening is really “a dollar story in disguise,” adding that Prime Minister Sanae Takaichi’s “comments about market monitoring and tax cuts didn’t drive anymeaningful movement”

Earlier, US and Japan unveiled initial details of Japan’s $550 billion commitment to invest in the US, which are considered to be positive for flows in the US currency

Fed minutes revealed the New York Federal Reserve made rate checks on USD/JPY for the Treasury in late January

GBP/USD fell 0.5% to 1.349, extending a drop into a third day after UK CPI data which further cemented the view that the Bank of England will deliver 50bps of easing this year

EUR/USD dropped 0.6% to 1.1785
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Christine Lagarde is expected to leave the European Central Bank before her eight-year term as president expires in October 2027, the Financial Times reported, citing an unidentified person familiar with her thinking

Reporting by Miles J. Herszenhorn