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JPY Firms Up Into Tokyo Fix, AUD Gains After Westpac Changes RBA Call

FOREX

JPY tops the G10 scoreboard into the Tokyo fix, with month-/quarter-/Japanese half FY-end flows probably already in play. EUR/JPY crossed below its 100-DMA for the first time since May, likely amplifying demand for JPY.

  • AUD picked up a bid and continues to trade on a firmer footing after Westpac pushed their RBA easing call back to Nov and no longer expect interest rate cuts in Oct.
  • GBP has fared well, despite weekend comments from BoE's Tenreyro (who pointed to encouraging evidence on negative interest rates), fresh political headwinds for PM Johnson and lingering Brexit uncertainty.
  • USD/TRY printed record highs at TRY7.8279 before pulling back below TRY7.75, but it was hard to pin the move on any specific headline. Thinner liquidity and Mrs Watanabe's activity are the usual touted protagonists for such moves in the timezone.
  • Monday offers a data-light start to the week, with focus turning to central bank rhetoric. Fed's Mester, ECB's Lagarde & Schnabel, BoE's Bailey & Riksbank's Breman are set to speak.

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