July 25, 2022 00:34 GMT
The greenback takes the lead in G10 FX space as U.S. Tsy yield curve has bear flattened and U.S. e-mini futures trade in the red. The dollar index (BBDXY) has crept higher but remains within comfortable distance from last Friday's highs.
- Geopolitical backdrop is denting risk sentiment, with Sino-U.S. tensions resurfacing over House Speaker Pelosi's planned visit to Taiwan. Elsewhere, Russia struck the Ukrainian seaport of Odesa, throwing the grain exports pact brokered by Turkey & the UN into doubt.
- Firmer U.S. Tsy yields have driven USD/JPY higher, the rate has added ~40 pips as we approach the Tokyo fix.
- There has been little appetite for Antipodean FX in early trade. AUD/USD attempted a break below the $0.6900 mark, but the Aussie outperforms the kiwi amid an uptick in AU/NZ 2-Year swaps spread.
- German Ifo Survey will take focus after the data-light Asia session.