BBDXY A Little Lower On Day, USD Mixed Vs. Peers

USD-negative movement in U.S. yields spreads vs. EUR & GBP weighs on the broader USD ahead of NY trade.

• The index stabilises with e-minis ticking off session highs (moves in e-minis are small).
• That leaves the BBDXY lower on the day, but within Friday’s range.
• Elsewhere, the preliminary month-end sell-side models we have seen are tilted towards USD selling, so there may be some frontrunning of those flows given the limited news.
• Digging deeper USD performance is mixed, with the greenback outperforming AUD, NZD, CAD & JPY.
• Yield differential movement explains the USD/JPY uptick since the Tokyo close.
• Elsewhere, the NZD seemingly falls afoul of long positioning and the removal of NZD-supportive flows ahead of the settlement of last week’s NZGB syndication. This week’s RBNZ decision also looms large.
• Spill over from the NZD and weaker iron ore prices have weighed on the AUD.
• The global calendar is relatively limited on Monday. Double coupon issuance from the U.S. Tsy and comments from Lagarde (although backward looking and focused on ’22 matters) are due later today.