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Another Wave Of USD Buying

FOREX

USD upside momentum continues. USD/JPY remains the focus point, with the pair just below 144.00 currently. Yen is the weakest in the G10 space so far today, down 0.75%. Comments earlier from Cabinet Secretary Matsuno that Japan is ready to act only provided temporary relief. Momentum flows look to be the key driver in the FX space, rather than cross asset signals. We aren't seeing sharp moves in the US yield or equity space.

  • Yen weakness has been followed by NZD/USD (off 0.60%), to sub 0.6000, while AUD/USD is around 0.6700 currently. EUR/USD is at 0.9880, but for now remains above overnight lows. GBP/USD is sub 1.1460.
  • USD/CNH is above 6.9900, getting just above 6.9950 (last at 6.9920). Onshore spot is trending higher is well but is yet to breach 6.9800. Trade data added to the softer mood with exports and imports both weaker than expected.

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