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Free AccessJPY Recovers Off Lows, But Trend Remains Down
- JPY is the firmest currency on the day, recovering off recent lows as markets book profits on the recent downtick. USD/JPY has shown back below the 114.00 handle, and sits either side of the mark ahead of the NY crossover. Despite the modest bounce in the currency, the outlook remains bearish JPY, with USD/JPY tilted higher while the price holds above 113.38 support.
- Elsewhere, AUD and NZD are softer, falling against most others in a moderation of strength earlier in the week. Some weight has crossed through commodity-tied currencies after China's NDRC warned of a crack down on commodities speculation, headlines that have led to a sharp pullback in China listed metals and coal contracts.
- The USD index is generally firmer, but holds south of the 94.00 and therefore well off recent highs. A modestly flatter yield curve (10y yield lower by 2bps, 30y yields lower by 3bps) is containing dollar strength at these levels.
- Weekly US jobless claims data takes focus going forward, with speeches also due from Fed's Waller and RBA's Lowe. Earnings season continues, with reports from Intel and AT&T among the highlights Thursday.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.