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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.
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Free AccessUSD Cycle Highs in View as USD/JPY Prints Best Level in Decades
- The greenback trades uniformly higher pre-NY hours, keeping pressure on the cycle highs printed earlier this week at 109.478. USD strength tipped USD/JPY to 139.68 overnight, highest since 1998 and prompting a fresh warning from the MoF: "Watching FX with a high sense of urgency", "Sudden moves in FX aren't desirable".
- NOK is sliding for a second session and again is the worst performing currency in G10. Both USD/NOK and EUR/NOK are now through the psychological 10.00 handle, with today marking the beginning of the Norges Bank's sized-up FX buying programme. Key levels to watch include the 100-dma in EURNOK at 10.0707 and 10.1442 in USDNOK, the 76.4% retracement of the July - August downleg.
- USD/CNH shot lower on reports that Russia are mulling buying as much as $70bln in so-called 'friendly' currencies to stem the RUB rally this year. USD/CNH slipped through yesterday's lows in response to touch 6.8886 and narrow the gap with key support at 6.8817, the 23.6% retracement for the late August upleg.
- Meanwhile, energy prices are sliding further, with Germany's 1-month forward electricity price near 30% off last week's highs. The EU's plan to curb power and energy prices continues to take shape, with a spokesperson this morning outlining that price caps, windfall taxes and demand reduction tools are being considered. Lower energy prices are helping support the EUR, with EUR/GBP near three-month highs.
- Focus turns to the ISM Manufacturing report & weekly US jobless claims as well as speeches from ECB's Centeno & Fed's Bostic.
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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.