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Risk-On Flows Push USD/JPY Toward Y110 Mark

FOREX

USD/JPY punched through resistance from Y109.85, which capped gains on Jun 5, Mar 26 & Mar 29, as a broader risk-on orientation inspired across-the-board yen sales. USD/JPY found itself within touching distance from the psychological Y110.00 level, which has remained intact for a year.

  • The Antipodean currencies outperformed in the G10 basket, as broader sentiment improved after the latest round of U.S. Pres Biden's upbeat comments re: local vaccine rollout. A BBG trader source flagged leveraged buy stops above $0.7018 as a kiwi-supportive factor.
  • The PBOC fixed its USD/CNY mid-point at CNY6.5641, 2 pips below sell side estimates. USD/CNH slipped after failing to take out yesterday's high.
  • Selling pressure hit TRY as Turkish Pres Erdogan sacked CBRT Dep Gov Cetinkaya and replaced him with Mustafa Duman, a former Morgan Stanley executive.
  • U.S. Conf. Board Consumer Confidence, flash German CPI, EZ sentiment gauges as well as speeches from Fed's Williams & Quarles, ECB's Centeno & Riksbank's Ingves take focus today.

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