FX SUMMARY

USD has given back some of its overnight gains, but a more subdued session for FX.

• All of the action this morning has been in EU Government bonds, plummeting.
• EUR has been underpinned, on a combination of a weaker Dollar, and uplifting EU PMI releases, which push yields higher.
• The EU now also seek to lift travel restriction for travelers that have been vaccinated.
• Risk on tone, has puts some pressure on JPY
• The pound leads against the Yen in G10, up half a percent.
• Initial target here, comes at Thursday high, 152.40.
• USDJPY tested through 109.64 61.8% retracement of the Mar 31 - Apr 23 sell-off.
• Further upside traction opens to 109.96 High Apr 9 next.
• Broader base USD selling has been noted against the EUR, GBP, SEK, AUD, SEK, NOK, CNH. INR, CZK.
• Looking ahead, Canadian and US Manufacturing PMI are set for release.
• Fed Powell is the scheduled speaker, but he will be speaking on community development, so unlikely to hear about Monetary Policy.