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Extends gains on the European Govie open

USD
  • USD continues to trade on the front foot on the European Govies open, given the continued rally in Yields, led by Germany at the end of last week and at the start of this week, with US and UK catching up.
  • Some market colour yesterday in Europe, saw some play of 150bps hike by December for the ECB via Options.
  • ALL EYES are on the ECB this week. Friday will see the US CPI release.
  • The Yen is the worst performer in G10 against the USD, driven by yield, and following Kuroda; "BoJ will continue with the current strong monetary easing."
  • USDJPY tested the 130 figure, but initial resistance is seen at 133.11 High Apr 4 2002
  • Also recall overnight "Monitoring FX With A Sense of Urgency, Japan’s Suzuki Says" (as per Bloomberg)

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