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Market Closures Keep News Flow Light

FOREX

A quiet session so far with the greenback holding yesterday's gains following firmer than expected CPI numbers, while US President Biden said earlier he sees room for a compromise on his proposal for infrastructure spending after meeting with Republican leaders but will move forward without the opposition party if necessary, adding he saw some reason to be optimistic.

  • AUD and NZD both flat, Australian Health Minister said it aims to manufacture the Moderna vaccine locally, but in the meantime has signed a deal for 25 million doses.
  • JPY is weaker after staging an impressive rally on Wednesday, USD/JPY around 10 pips higher with little local news flow.
  • GBP is flat. BoE's Haldane gave a press interview in which he said UK inflation is likely to be above 2% by the end of 2021 and expects double digit growth next year. Data earlier in the session saw the April RICS house price balance +75% compared to expected 62%, a 40-year high.
  • CNH is stronger, but USD/CNH is off best levels. Markets assess data from after market yesterday that showed China's credit expansion slowed in April, a sign that the PBOC is steering credit growth lower.
  • As a note markets in Singapore, India, Indonesia, Malaysia, Philippines and Pakistan are closed for holiday's.

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