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Greenback and Japanese Yen Under Pressure With Firmer Risk Backdrop

EMERGING MARKETS
  • With major equity indices continuing to trade in a supportive manner, both the greenback and the Japanese yen have been under pressure in the G10 currency space with higher core yields also providing a JPY headwind.
    • AUD underperforms following the RBA decision and GBP remains the strongest performer after cable broke a confluence of resistance points between 1.2425-50.
  • Consumer expectations for eurozone inflation in coming months declined again in February, offering some comfort to European Central Bank policymakers concerned about the possibility of a wage-price spiral from elevated negotiated pay deals. Median expectations for inflation over the next 12 months fell to 4.6%, down from 4.9% in January, while the consumer outlook for inflation three years ahead edged down from 2.5% to 2.4%, the ECB's latest survey showed.

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