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Free AccessFront-End Pressure Translates to Fresh Pullback Lows For USD/JPY
- Renewed pressure on the front-end of the curve across the US, EZ and UK (and the market-implied rate hike pricing) translates to further USD weakness and allows EUR/USD and GBP/USD to trade more steady above lows.
- USDJPY has printed a new pullback low at 132.49, extending the losses on the day to 250pips and near 550 pips off the post-Powell high next week. Spot rate now sits pinned between two sizeable expiries for today's NY cut: $1.0bln at Y132.00 and $710mln at Y132.50.
- Spot volatility continues to feed into implied vols, with USD/JPY overnight vols hitting a daily high above 33 points - although someway to go until the pre-BoJ / NFP high of 43 points can be met.
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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.