Post-NFP rally extends - Equity futures.......>

FOREX: Post-NFP rally extends

- Equity futures worked their way higher in Asia-Pacific hours, prompting the

e-mini S&P to top out at 2947.50, a new May high. This helped keep an underlying

bidtone in USD/JPY, which crept above Y107.00 in early Europe, although volumes

and liquidity remain pretty light. This has kept JPY at the bottom of the G10

table so far Monday. 

- The USD is inching higher as short-end US yields hold their post-NFP gains.

The 10y is holding either side of the 0.7% level, up just shy of 10bps from the

Friday lows. A mixed performance for European stocks today is also prompting

traders to favour the greenback.

- The restricted ranges so far Monday have kept a lid on implied volatility,

prompting short-end of the G10 vol curve to retain the recent retreat.

- The data schedule is light Monday, with no tier 1 releases due. Instead, focus

shifts to speeches from ECB's Mersch and Fed's Bostic, although events later in

the week will be watched more carefully; namely Fed's Powell on 'current

economic issues' on Wednesday.