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Commodity-Tied Dollar Block Tops G10 As Oil & Equities Nudge Higher

FOREX

The commodity-tied dollar block topped the G10 FX leader board in Asia, benefitting from an uptick in e-minis & crude oil futures, as well as reassuring policymaker rhetoric surrounding Chinese economic growth & macro policy settings. This of course comes after Tuesday’s frenetic session, which saw Omicron worry and hawkish communique from Fed Chair Powell in the driving seat.

  • Broader headline flow was relatively limited, with firmer than expected Australian GDP and a slightly softer than expected Caixin manufacturing PMI print out of China doing little for price action.
  • That left the previously outlined themaes at the fore, which resulted in pressure for the JPY, CHF, EUR & USD.
  • USD/CNH stuck to a tight range, with bears becoming a little more fixated on the YtD low.
  • Final Eurozone m’fing PMI readings are set to headline in European hours, while the latest ADP employment and ISM m’fing releases will cross during the NY session.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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