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China Softer For Second Session

FOREX
  • GBP is the poorest performing currency in G10 so far Tuesday, with GBP/USD pressure below 1.42 as markets unwind the gains seen late Monday on month-end and fix-related buying. Eurozone inflation numbers came in just ahead of expectations, although core CPI was inline at 0.9% Y/Y.
  • China FX is softer for a second session, snapping the extended winning streak that pressured USD/CNY to its lowest levels since 2018. Markets continue to react to the PBoC's policy tweak on Monday, in which they raised the FX RRR to 7% from 5%.
  • NOKSEK trades either side of parity with the cross looking to have bottomed for now. NOK is the firmest currency in G10, while GBP and NZD are among the weakest.
  • US ISM Manufacturing numbers take focus going forward, with markets watching closely for any clues ahead of Friday's payrolls release. Canadian GDP also crosses as well as speeches from BoE's Bailey, Fed's Brainard & Quarles.

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