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USDCAD TECHS

Stronger In a Range

AUDUSD TECHS

Weaker In A Range

US TSYS SUMMARY

Ending The Week On A Soft Note

EURJPY TECHS

Bearish Risk Growing

USDJPY TECHS

Stronger, But Still Vulnerable

US

SP500 PE Ratio vs. CPI Inflation

Firming oil and sour sentiment.....>

EMERGING MARKETS
EMERGING MARKETS: Firming oil and sour sentiment dents EMFX for second session
- Currencies of oil importers took another hit this morning after already
suffering under the weight of the WTI and Brent crude rally last Friday. The
energy complex added to recent gains today in anticipation of further unrest
between the US and Iran, leaving WTI and Brent higher by at least 1% and within
range of the 2019 highs printed in late April. This led the likes on INR, KRW
and CLP lower, with weakness in regional equities adding to the downside
pressure.
- EMFX implied vols are generally higher, with the most notable gains seen in
the 1m BRL, CLP and KRW contracts. Spot USD/KRW has now broken above the 50-dma
at the close, opening a move on the 200-dma at 1176.34 and looks to close the
phase one trade deal gap at 1186.90 next. Similarly, USD/INR is well within
range of the mid-November highs at 72.2437.
- Services PMIs from Brazil are due today, but focus will likely remain on any
US/Iran tension escalation as well as rate decisions later in the week from
Poland, Israel and Peru.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com