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US FIX - 05/08/21


Post LIBOR Settle Update


Snap Election Speculation Continues To Mount

DOLLAR-YEN: Early Asia-Pac trade sees a follow-through from Wednesday's tensions
around the Hong Kong bill passed by U.S. Senate. The document got a green light
in the House of Representatives and awaits presidential approval. BBG reported
that U.S. Pres Trump plans to sign it into law despite warnings from China. On
top of that, the POTUS criticised Beijing for not "stepping up" during the
negotiating process. USD/JPY has already shed 15 pips as a result and now trades
at Y108.46.
- This comes after the pair finished just a handful of pips higher Wednesday.
Although initially pressured by the HK bill situation, it more than recouped
losses through European hours. However, a RTRS report suggesting that U.S.-China
talks re: initial trade pact may drag on into next year put a fresh bid into
JPY, prompting the rate to trim gains ahead of the close.
- Bears look for a break under the 50-DMA/Nov 14 low of Y108.29/24, which would
open up the Nov 1 trough at Y107.89. Bulls need to retake Y108.57, a broken
channel support-turned-resistance, before targeting the 200-DMA at Y108.97.
- Japanese CPI and flash Jibun Bank PMIs are due on Friday.
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