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Bunds attempt to break lower

FOREX: Spillover session sees risk-on extend
-USD/JPY inched to new 2020 highs Thursday as the risk-on move that gathered
pace on Wednesday extended into a second session. New alltime highs at the open
for US equities underpinned the risk bid, which kept the greenback on the front
foot and pressured EUR/USD briefly below the $1.11 mark. CAD underperformed also
as key resistance layered ahead of C$1.31 gave way.
-GBP underperformed, with GBP/USD slipping through $1.3050 following a speech
from BoE Governor Carney titled "A Framework for All Seasons?". In the speech,
Carney talked up the ample downside policy space available to the MPC, judging
that the Bank have the equivalent of 250bps of policy space with which to combat
any downturn. Carney added that the MPC could give a "prompt response" to any
lasting signs of economic weakness, adding to the bid in UK fixed income and the
downturn in GBP.
-US nonfarm payrolls steal the spotlight Friday, but some attention will also
likely be paid to French and Italian industrial production and the Canadian jobs
report also. BoE's Tenreyro is also due to speak.