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MNI EUROPEAN MARKETS ANALYSIS: JPY Rallies, Bund Futures Cheapen

  • Weakness in Bund futures ahead of and after German regional CPI data out of NRW applied pressure to the core FI space in overnight dealing, meaning U.S. Tsys unwound their early Asia uptick.
  • JPY was the clear outperformer in the G10 FX space as Tokyo reacted to the potential for a slower, data-dependent round of tightening from the Federal reserve. Exiting short positioning in JPY may have aided the move.
  • Looking ahead, focus turns to German CPI as well as U.S. advance GDP data. Comments are due form ECB Governing Council member Visco. Participants will also be on the lookout for comments surrounding the latest phone call between U.S. President Biden & Chinese counterpart Xi.


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  • Weakness in Bund futures ahead of and after German regional CPI data out of NRW applied pressure to the core FI space in overnight dealing, meaning U.S. Tsys unwound their early Asia uptick.
  • JPY was the clear outperformer in the G10 FX space as Tokyo reacted to the potential for a slower, data-dependent round of tightening from the Federal reserve. Exiting short positioning in JPY may have aided the move.
  • Looking ahead, focus turns to German CPI as well as U.S. advance GDP data. Comments are due form ECB Governing Council member Visco. Participants will also be on the lookout for comments surrounding the latest phone call between U.S. President Biden & Chinese counterpart Xi.


Keep reading...Show less