[MARKET ANALYSIS] Quiet action across most G10s; UK CPI to support doves ahead of July BoE, JPY marginally leads after BoJ source reporting, benefitting low-yielders

G10s are mostly firmer against the Buck with JPY leading after source reports sparked a sharp 45pip move; low yielders mostly helped among this Yen strength.  Geopolitics remains constructive for the Greenback on paper with oil prices firmer once again, but the environment fails to translate into Buck strength with JPY weighing on the currency today. USD specific catalysts are light with an extremely light data calendar, so focus will be on GOOGL earnings due after the NY closing bell, potentially a report which could give the Buck a bias. JPY moved sharply lower, USD/JPY falling 45 pips from recent highs, before paring some of the move. A Bloomberg source report said the BoJ is said to be open to a hike faster than every 6 months, adding the recent JPY weakness is seen as an upside risk to inflation. Despite the move lower in USD/JPY, markets seem inclined to buy dips in the pair, looking to push it towards the 165.00 region, where option structures last week were believed would be the next pain point for the MoF. USD/JPY is a little weaker and just below 163.00.  UK CPI: Headline Y/Y cools at a faster rate than expected, and 0.5ppts below BoE’s April MPR forecast; Services cooled in line with BoE forecast due to volatile airfares, while core metric stood at 2.6%, in line with BoE forecast. Within the series, one element likely to be welcomed by policymakers is the food component, slowing to its lowest since August 2024, at 1.1ppts below the BoE fcst. Overall, a report which supports the narrative of a BoE unchanged for the remainder of the year. In terms of the latest political headlines, PM Burnham announced a new fare cap for buses which is set to cost GBP 454mln, with the government release not making it clear whether it would be funded via borrowing or a cut to foreign aid. Elsewhere, Burnham's allies are said to be ruling out an increase to the 45p additional tax rate for high earners, which would have been utilised to fund the rise in the personal allowance - another update which signals unclear funding plans. GBP/USD has been choppy throughout the session and ultimately lacks direction within a 1.3370-1.3390 range.