Free Trial
FED

Ending QE Early Would Be Hawkish... Right?

EGB OPTIONS

Bund Put Spread Buyer

US EURODLR OPTIONS

Taking Profit on 1Wk Bet

US TSY OPTIONS

10Y Vol For Sale

CANADA

ING Now Sees March Hike, Keeps At Least 4 In 2022

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
FOREX
FOREX: AUD on track to test YTD lows on worst CPI print since 2016
-AUD is comfortably the poorest performer in G10 Wednesday as Q1 CPI fell well
below expectations. The Q/Q came in flat at 0% and Y/Y at just 1.3% - both 0.2
percentage points below expectations. In response, AUD fell sharply, bottoming
out at $0.7027 and prompting bears to shift targets to the March lows of $0.7003
and the year's lowest levels of $0.6982 (excepting the flash crash lows of
$0.6741 printed Jan3). AUD implied vols have rallied in sympathy, with the 1m
measure above 7.5 points for the first time since late March.
-EUR came under pressure as Germany's IFO data disappointed, but markets clearly
remain happy to buy dips in EUR/USD following the abrupt sell-off yesterday.
Given the timing of yesterday's USD rally alongside strong US earnings, today's
reports may come under increased scrutiny. CHF is outperforming somewhat, with
the currency bouncing off multi-month lows printed yesterday.
-Data is again light, with the Bank of Canada rate decision the focus at
1500BST. Earnings from Boeing, Caterpillar, Facebook, Microsoft, Visa and AT&T
are due (among others).
Sign up now for free access to this content.

Please enter your details below and select your areas of interest.