MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Japan Nov CGPI Rises 3.7% Y/Y, Import Prices Drop

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: Rally for Equities Underpins Antipodean FX Strength, NOK Outperforms

FOREX
EM BulletBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • The strong recovery and extension higher for major equity benchmarks on Thursday has underpinned notable outperformance for the likes of AUD and NZD, both rising around 1% against the dollar. In contrast, the risk on tone has worked against the Japanese Yen. USDJPY is 0.3% higher on the day, however, remains well off the overnight 143.95 highs.
  • Outperforming in G10 is the Norwegian Krone, following a relatively hawkish tilting Norges Bank. The central bank left its policy rate on hold at 4.5%, as widely expected, and said the first cut this cycle was likely to come in the first quarter of 2025. As such, USDNOK is down 1.4% as we approach the NY crossover, with the NOK also benefitting from the risk on tone.
  • The USDNOK has now broken below the August low, and Market Participant's attention will now turn to the June low situated at 10.4354 (prices are according to BGNE).
  • A clear break through, would open to 10.3865, this is not only the March low, but also the 76.4% retrace of the Dec/July range.
  • Contrasting price action across G10 leaves the USD index unchanged on the session, following some impressive two-way swings. The post-Fed recovery for the index to 101.40 has been well sold into and the DXY has been edging steadily lower across the European morning and trades just 35 pips away from the year’s lows printed just yesterday at 100.22.
  • Focus today turns to the Bank of England, where an unchanged decision is expected. Policy decisions in Turkey and South Africa are also expected, as well as jobless claims data in the US.
262 words

To read the full story

Close

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.
  • The strong recovery and extension higher for major equity benchmarks on Thursday has underpinned notable outperformance for the likes of AUD and NZD, both rising around 1% against the dollar. In contrast, the risk on tone has worked against the Japanese Yen. USDJPY is 0.3% higher on the day, however, remains well off the overnight 143.95 highs.
  • Outperforming in G10 is the Norwegian Krone, following a relatively hawkish tilting Norges Bank. The central bank left its policy rate on hold at 4.5%, as widely expected, and said the first cut this cycle was likely to come in the first quarter of 2025. As such, USDNOK is down 1.4% as we approach the NY crossover, with the NOK also benefitting from the risk on tone.
  • The USDNOK has now broken below the August low, and Market Participant's attention will now turn to the June low situated at 10.4354 (prices are according to BGNE).
  • A clear break through, would open to 10.3865, this is not only the March low, but also the 76.4% retrace of the Dec/July range.
  • Contrasting price action across G10 leaves the USD index unchanged on the session, following some impressive two-way swings. The post-Fed recovery for the index to 101.40 has been well sold into and the DXY has been edging steadily lower across the European morning and trades just 35 pips away from the year’s lows printed just yesterday at 100.22.
  • Focus today turns to the Bank of England, where an unchanged decision is expected. Policy decisions in Turkey and South Africa are also expected, as well as jobless claims data in the US.