Negative Sentiment Boosts JPY, Antipodeans Shielded By Firmer Crude Oil

G10 FX space started the new week by partially reversing last week's moves. The Antipodeans caught a bid, benefitting from an uptick in crude oil prices, linked to the weekend election of a hardline cleric as Iran's president, which may throw sand into the gears of the Iran nuclear talks. Firmer commodity markets shielded the Antipodeans from the potential impact of souring risk sentiment.

• The yen jumped onto the top of the G10 pile, as USD/JPY dipped under the Y110.00 mark on the back of a bout of broader greenback sales. A poor showing from Asia-Pac equity markets and U.S. e-mini contracts lent support to the yen, amid talk of continued trimming of reflation bets. JPY remained buoyant, even as the DXY managed to recoup its initial losses.
• GBP led losses in G10 FX space after the Telegraph reported that the UK would not lift the remaining Covid-19 restrictions at the Jul 5 review. Positioning ahead of this week's monetary policy decision from the BoE may have also affected price action.
• The PBOC left the LPRs unchanged for the 14th month in a row and set its central USD/CNY mid-point at CNY6.4546, 8 pips below sell-side estimate. USD/CNH punched through a pair of its prior daily highs located at CNH6.4645/53 and printed its strongest levels since May 6.
• Speeches from Fed's Williams & Bullard as well as ECB's Lagarde & Centeno take focus from here.