MNI China Daily Summary: Friday, January 10

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USDA: CORN STOCKS 12,074M BSL ON JAN 1

MNI: USDA: 2024/2025 CORN PRODUCTION EST 14.87B BSL

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

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AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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FOREX: Mexico Call Underpins Sentiment, USD/JPY Bounces Well Off Lows

FOREX
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The greenback is regaining a minor part of the recent lost ground in overnight trade - although volumes are unsurprisingly very light given the Thanksgiving holidays today, and limited open of trade tomorrow. As a result, G10 FX futures volumes are ~30% below average for this time of day, and are unlikely to pickup notably across the session.

  • GBP/USD has faded off the 1.2694 high, having failed to make headway on the 1.27 handle on the USD weakness tripped by likely month-end flow and a minor fade of the recent dollar rally. With no cash yields to trade off, the greenback is likely to remain rangebound today - with markets looking to German CPI outturns for near-term direction.
  • After Trump's tariff-talk earlier this week spilled over into risk sentiment, European equities are seeing support and USD/JPY recovering well off lows after Mexico's Sheinbaum spoke with Trump overnight, in a conversation that Trump called "very productive" and Sheinbaum called "excellent" - which is underpinning sentiment here - likely meaning both Mexico and Canada are looking to avoid the worst impacts of tariffs into '25. MXN is the best performing global currency today, higher by over 1.5% vs. the USD, with CAD following in tandem. 1.3982 undercuts as support in USD/CAD.
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The greenback is regaining a minor part of the recent lost ground in overnight trade - although volumes are unsurprisingly very light given the Thanksgiving holidays today, and limited open of trade tomorrow. As a result, G10 FX futures volumes are ~30% below average for this time of day, and are unlikely to pickup notably across the session.

  • GBP/USD has faded off the 1.2694 high, having failed to make headway on the 1.27 handle on the USD weakness tripped by likely month-end flow and a minor fade of the recent dollar rally. With no cash yields to trade off, the greenback is likely to remain rangebound today - with markets looking to German CPI outturns for near-term direction.
  • After Trump's tariff-talk earlier this week spilled over into risk sentiment, European equities are seeing support and USD/JPY recovering well off lows after Mexico's Sheinbaum spoke with Trump overnight, in a conversation that Trump called "very productive" and Sheinbaum called "excellent" - which is underpinning sentiment here - likely meaning both Mexico and Canada are looking to avoid the worst impacts of tariffs into '25. MXN is the best performing global currency today, higher by over 1.5% vs. the USD, with CAD following in tandem. 1.3982 undercuts as support in USD/CAD.