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JPY Pressured Further as Equity Strength Persists


Equities are higher again Tuesday, with core European indices adding a further 0.5-0.7% this morning on decent activity. DAX futures saw the highest opening volumes for the index since the end of July, suggesting the lower volume, lower activity markets typical of August may be coming to an end.

Better equity markets have pressured the JPY further today, which is the weakest in G10 (as was the case yesterday pre-NY also).

The EUR trades well, with price action this morning erasing yesterday's late EUR/USD weakness, with the price supported by a better-than-expected German IFO release (Business Climate and Current Assessment beat forecast, but Expectations missed slightly).

The USD index is a little weaker and sits below the Monday open pre-NY hours, but losses are muted with the week's lows yet to be tested. Data today is tier 2, leaving most of the market focus on the speech from Fed's Powell at Jackson Hole on Thursday.

US consumer confidence and new home sales data are the highlights today. BoC deputy governor Schembri and Fed's Daly are both due to speak.

MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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