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BRENT TECHS

(N1) Price Structure Remains Bullish

USDCAD TECHS

Tests Major Support - The 2017 Low!

AUDUSD TECHS

New Weekly Lows

EURJPY TECHS

Needle Still Points North

GILT TECHS

(M1) Key Support Zone Exposed

G10 FX Sees Risk Switch Flicked To On

FOREX

Risk appetite improved despite lack of any major risk-on catalysts, with some pointing to declines in Covid-19 hospitalisation rates in several U.S. states, even as the global case count eclipsed the psychological barrier of 20mn patients. Equity markets provided a cue to riskier FX, as regional benchmarks had a positive showing and U.S. equity index futures moved higher. With Japanese and Singaporean players back from holidays, growth proxies gained at the expense of safe havens. Firmer oil prices supported commodity-tied FX, with the Antipodeans topping the G10 pile, even as the latest Australian NAB Business Confidence Survey showed that sentiment declined before Melbourne went into lockdown.

  • USD softening translated into price action across Asian EM FX space. USD/CNH was offered despite a marginally softer than expected PBoC fix. KRW erased losses vs. USD, despite a deterioration in South Korean trade data for the first 10 days of August. USD/SGD retreated from a one-week high, printed after the release of horrific Singaporean final GDP data.
  • Japanese Eco Watchers Survey, UK labour market figures, German ZEW Survey, U.S. PPI, Canadian housing starts & comments from Fed's Barkin and Daly take focus from here.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com