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USD and JPY sluggish as equities claw back....>
FOREX: USD and JPY sluggish as equities claw back Friday's lost ground
-The JPY's the worst performer in G10 on Monday as markets bounce following the
sharp drop in equities last week. Despite the S&P500 rising as much as 1.5%, the
index is still yet to break above Friday's high, meaning a meaningful return to
risk is yet to be seen. USD/JPY recovered from fresh 2018 lows of Y104.56 to
retake the Y105 mark with Japanese banks buying AUD/JPY triggering JPY weakness
across the board. Both EUR/USD and GBP/USD rallied sharply on the resulting USD
weakness.
-Realized vol came well in front of implied on Monday, with EUR/USD and GBP/USD
rising 0.9% and 0.7% apiece. Data and newsflow was relatively light, but volumes
were relatively healthy ahead of the shortened week with market holidays and
Friday and next Monday.
-NOK rose against all other G10 as the currency caught up with a strong Brent
oil streak last week and as Fitch affirmed Norway's top AAA rating on Friday.
-Tomorrow, focus turns to German import prices, Eurozone confidence numbers and
US Richmond Fed manufacturing index.
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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.