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USD and JPY sluggish as equities claw back....>

FOREX
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.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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