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FOREX

FX OPTION EXPIRY

US TSY FUTURES

BLOCK, 2s5s Steepener

FOREX

The greenback remained heavy as regional players assessed recent Fedspeak, which poured cold water on inflation concerns. The absence of notable news/data flow helped make this the main talking point in Asia-Pac hours. The DXY extended yesterday's losses, while USD underperformed all of its G10 peers.

  • NZD outperformed at the margin, amid chatter that buy stops were cut above May 21 high of $0.7222 (per BBG). The kiwi's relative strength failed to translate into any notable bid into commodity FX space, even as BBG Commodity Index edged higher.
  • JPY lagged all G10 currencies save for USD, as regional equity benchmarks firmed a tad. Gotobi Day flows may have applied some pressure to the yen.
  • The PBOC set their USD/CNY mid-point at CNY6.4283, 20 pips above sell-side estimate. BBG fixing survey had a narrow range, which added to its significance. That being said, the weaker than expected fixing failed to lend support to USD/CNH, which slipped into negative territory.
  • German GDP (f) & Ifo Business Survey, U.S. Conf. Board Consumer Confidence & new home sales as well as comments from Fed's Barkin, Evans & Quarles, ECB's Lane & Villeroy and BoE's Tenreyro take focus from here.