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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.
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Free AccessMNI US Macro Weekly: Politics To The Fore
MNI Credit Weekly: Le Vendredi Noir
USD Extends Losses After Yellen's Remarks
The greenback extended losses amid risk-on impetus generated by yesterday's testimony from U.S. Tsy Sec nominee Yellen, who backed U.S. Pres-elect Biden's stimulus plan and pushed back against any imminent tax hikes. A strong earnings report from Netflix released after U.S. hours lent further support to risk appetite. The DXY faltered through yesterday's worst levels, while G10 crosses were happy to hold tight ranges ahead of Joe Biden's inauguration as the new POTUS.
- Firmer oil prices filtered through into commodity-tied FX space, supporting AUD, NOK & CAD against the U.S. dollar. The Aussie topped the G10 pile amid little in the way of local catalysts. AUD/JPY pushed higher for the second day in the row, but failed to test yesterday's high.
- The PBOC fixed USD/CNY at CNY6.4836, around 47 pips lower than yesterday on greenback weakness, but 12 pips above sell side estimates. The central bank injected CNY278bn of liquidity, the second injection after a prolonged drain after year end. The LPR rates were left unchanged, in line with expectations.
- South Korea said it will tighten FX monitoring of non-bank financial companies.
- Coming up today we have inflation data from the UK, Canada & EZ, a monetary policy decision from the BoC and comments from Riksbank's Skingsley & BoE's Bailey.
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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.