Free Trial

JPY Resumes Slide, Growth Proxies on Front Foot

FOREX
  • JPY remains on the backfoot, with the currency underperforming all others in G10. This puts USD/JPY just below the Y113.50 mark, with the week's highs of Y113.80 the upside target and bull trigger. A break above would open levels not seen since late 2018.
  • The greenback also trades offered, with the USD Index extending yesterday's slide to drop to the lowest levels since early October. the moves put EUR/USD back above the 1.16 handle, opening gains toward 1.1640 and the 50-dma at 1.1722.
  • Risk appetite appears to have improved, with European equity markets in positive territory with gains of 0.7-1.1%. This has helped growth proxies and high beta currencies to the top of the table, with NZD, AUD and NOK outperforming.
  • US PPI data crosses later today, with markets expecting a moderation in price pressures on a M/M basis, although Y/Y metrics are expected to continue to climb, putting PPI Final Demand at 8.7%, another series record. Weekly US jobless claims data also crosses.
  • Central bank speak picks up at the NY crossover, with highlights including ECB's Knot, BoE's Tenreyro & Mann as well as FOMC members Barkin, Daly and Harker and Fed's Logan.

To read the full story

Close

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.