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FOREX: JPY Weakness Pervades, Despite Mixed USD Performance

FOREX
  • JPY weakness again pervades across G10 currencies, with USD/JPY touching a new high overnight at 161.94, and AUD/JPY's winning streak extending to 108.21. JPY weakness comes as the equity rally resumes. The strong finish on Wall Street yesterday has fed into positive European performance, with the still-fading odds of a right-wing majority also helping contribute to better risk sentiment today.
  • The USD is mixed, paring a small part of the gains posted across the first two sessions of this week. The USD Index remains within reach of 106.130 resistance, but a small gap is opening to start off Q3 and the month of July.
  • NOK is the best performing currency in the region, firmer on the back of a better crude price and stronger local equities. This has allowed EUR/NOK to roll off the 11.5051 recovery high and snap the eight-session winning streak posted off the June low. Potentially significant is the formation of a death cross (50-dma moving below 200-dma) this week, the first since January this year. 
  • US weekly jobless claims data is set to cross later today - brought forward by one day from the usual schedule due to market closures around the July 4th holidays this week. ISM services data is set to follow, at which markets expect a moderation in the headline to 52.6 from 53.8. ECB's Lane, Knot and Lagarde are set to make further appearances at the ECB's Sintra conference, while the FOMC minutes are set for release after the European close. 

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