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Greenback Pressured, JPY Outperforming

FOREX

USD has been pressured in early Asian trade as local participants digest Fed Chair Powell's comments yesterday re: the beginning of the disinflation process.

  • JPY is the strongest performer in G-10 space at the margins, USD/JPY is ~0.5% dealing just off session lows of ¥128.18 after breaking overnight lows. The bear trigger is at ¥127.23, the Jan 16 low, from here bears can target 126.81 a Fibonacci projection.
  • The Antipodeans are both ~0.2% firmer, with the AUD/USD printing fresh cycle highs at $0.7158. NZD/USD is dealing at $0.6515/20, with Jan 2023 highs in sight.
  • EUR/USD printed its highest level since April 2022, the single currency is up ~0.3%.
  • Cross asset flows are continuing the risk on move we saw late in the NY session. E-minis are ~0.4% firmer, BBDXY is ~0.3% softer and US 10 Year Treasury yields are down ~1bp.
  • There is a thin data calendar in APAC today. Further out we have the BOE rate decision before the ECB rate decision and President Lagarde's press conference. Also on the wires is U.S. Factory Orders, Initial Jobless Claims and Durable Goods.

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