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JPY Sags as Equities Rip to New All Time Highs

FOREX
  • The JPY was among the poorest performers in G10 Monday, with USD/JPY extending the recent sequence of higher highs to ten consecutive sessions. The move coincided with further upside in US equities, with the recovery rally now boosting the Dow Jones Industrial Average through the late February highs to record levels.
  • The buoyant risk sentiment correlated with a stronger dollar, as the USD Index extended the recent bull run.
  • EUR traded weaker, with the expected uptick in PEPP purchases failing to materialise in last week's bond holdings data. This will likely continue to be a market focus headed into this Thursday's ECB meeting.
  • Focus Tuesday turns to German trade balance data for January and final Q4 GDP readings for the Eurozone. RBA Governor Lowe is also due to speak.

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