Little reprieve for single currency on ECB....>

FOREX: Little reprieve for single currency on ECB bazooka

- Following the ECB's 'Bazooka' package late yesterday, European government

bonds are flying, crushing peripheral yields as the Greek, Italian, Portuguese

10y yield spreads over Germany tighten sharply. The feed through to currency

markets was initially through EUR strength, leading to EUR/USD staging a test on

the $1.10 mark, but this has since faded and the onus remains on the 2020 low at

$1.0778.

- NOK is, again, the poorest performer in G10 FX and at one point today

extending its decline against the EUR to 34%. This price action appeared to

force the Norges Bank to issue an unscheduled statement, warning markets that

they are considering the need to intervene via NOK purchases. They justify the

threat by stating that recent moves in FX have been "historically large".

- AUD is another weak currency today after the RBA threw in the towel and

announced an outright target for short-end yields at 0.25%. The new low now sits

at $0.5510 for AUD/USD.

- US weekly jobless claims are next up and the SARB rate decision.