Free Trial

Risk-On Flows Dent Greenback, CNH & KRW Print Fresh Cycle Highs

FOREX

Some optimistic signals on U.S. fiscal front and a spillover from Wall Street supported risk appetite, generating risk-on flows across G10 FX space. There was little in the way of fresh headline/data catalysts, with U.S. stimulus talks still taking centre stage. Commodity-tied FX picked up a bid, while safe havens lagged. The greenback underperformed all of its peers from the basket, with the DXY registering a one-month low.

  • Greenback weakness helped some USD/Asia crosses fall to fresh cycle lows. USD/CNH sank through the CNH6.65 mark to its worst levels since Jul 2018 and a softer than expected PBoC fix failed to arrest the move. USD/KRW dipped to levels not seen since Apr 2019, as a continued recovery in South Korea's daily average exports bolstered the won, rendering it the best performer in the region.
  • On the radar today we have UK & Canadian inflation data, Canadian retail sales and comments from Fed's Mester, Kashkari, Kaplan, Barkin, Quarles & Bullard, ECB's Lagarde, de Guindos & Lane and BoE's Ramsden.

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.