MNI BRIEF:ECB Unifies Interest On Non-Monetary Policy Deposits

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

RPT-MNI INTERVIEW: Canada Budget Leans To Largesse-CFIB's Kelly

MNI: PBOC Conducts CNY2 Bln Via OMO Weds; Liquidity Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1025 Weds; -5.39% Y/Y

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

EZ Final Inflation Confirms Flash, But Services Contribution Up

Contributions to the Y/Y change in CPI

Restaurants and hotels drive the upside surprise at first glance

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Lower Yields Ignite An Extension Of USD Weakness

FOREX
  • A developing theme in the aftermath of the payrolls report has been a souring of greenback optimism, which extended once again on Tuesday. The Japanese Yen outperforms with USDJPY sliding back below 146 and EURUSD extending gains above parity.
  • A slightly strange session for risk as an initial rally across equity markets was met with a significant rout across the cryptocurrency market, potentially bolstering the sentiment for gold, which saw 2.2% gains throughout the session.
  • Currency markets appeared to take this volatility in its stride and the lower yields weighed on the greenback throughout US trade.
  • EURUSD had consolidated much of the European session around parity, however, once breaking yesterday’s highs around 1.0030, the single currency appreciated sharply to the next target of 1.0094, the high on Oct 27 and a technical bull trigger. Despite a brief pullback, the pair maintains a supportive tone ahead of the APAC crossover.
  • Similarly in cable, despite pulling back to 1.1430, the broad USD weakness saw the pair rally aggressively before topping out at 1.1600.
  • The Japanese Yen is leading G10 gains on Tuesday, as the lower yields work against the favourite trade of 2022. Furthermore, interventions to strengthen the yen continue to linger for short-sellers, especially as we approach the important US CPI data on Thursday.
  • Chinese CPI/PPI data is due overnight before another light day for European/US data on Wednesday.
Energy BulletsCommodities
Energy BulletsCommodities

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.