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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free AccessMNI US OPEN - RBA Holds, Communication Turns Slightly Dovish
MNI China Daily Summary: Tuesday, December 10
FOREX: JPY Trade-Weighted Index Surges Further, 6.5% Above Lows
- The JPY spot trade-weighted index hit a new recovery high ahead of today's European open, extending the rally off pre-intervention lows to near 6.5% at the daily high. The JPY rally puts the currency top of the G10 table again this morning, putting USD/JPY at new lows and prompting a print below Y100 for AUD/JPY.
- The aggressive short-covering rally continues (we wrote yesterday that deeply entrenched short positioning means this tailwind could persist in the short-term), allowing markets to shrug technical and momentum-signals that flag the JPY rally should run out of steam - the 14d RSI flags JPY as overbought against effectively every other currency in G10 at present.
- Growth and risk-proxy currencies are hardest hit - keeping AUD, NZD as the key underperformers. Softer equities and commodities prices are once again weighing, with yesterday's late run higher in the US 10y yield adding an extra element to the risk-off dynamic.
- German IFO data, US weekly claims & Advance GDP and appearances from ECB's Nagel (1200BST) and Lagarde (1600BST) top the schedule.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.