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JGB TECHS

(U1) Tilted Higher

AUSSIE 10-YEAR TECHS

(U1) Uptrend Weakening

US TSYS SUMMARY

Bullard Kickstarts Reflation Unwind Theme

AUDUSD TECHS

Fresh 2021 Lows

FOREX SUMMARY

FOREX

USD trades on the front foot this morning a continuation of the overnight session.

  • Equity future are better offered, providing some USD lifts
  • The Greenback tested high of the session across the board on Safe Haven, as Covid spikes, Lockdown and the lack of stimulus dominates.
  • Early European session saw two surprise rate cuts from Asia.
  • Indonesia cut rate by 25bps to 3.75% vs unchanged expected at 4%
  • The BSP, also cut 25bps to 2% versus unchanged expectation at 2.25%
  • GBP is down 0.47% against the Dollar, more a function of the broader USD buying, but also heavy as the window for a Brexit deal continues to narrow.
  • Brexit update are expected on Friday, but worth keeping an eye on any potential headline today.
  • ALL EYES today on EM FX and especially the CBRT, following Erdogan's comments on "high rates rendering production and export impossible".
  • Turkish Lira outperforms across the board, ahead of the awaited CBRT rate decision, when Economists surveyed by Bloomberg expects a 475bps hike to 15%
MNI London Bureau | +44 203-865-3806 | fabrice.benhassine@marketnews.com