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USD Firms, As Equities Slip/Yields Nudge Higher

USD

The USD is finding further support. The BBDXY now slightly higher for the session (last near 1228). In the G10 space, only JPY is still at firmer levels compared to the NY close. Still, USD/JPY is comfortably above earlier session lows, last around 129.20.

  • US equity futures have turned lower, with the main indices off -0.30/-0.50%, with the Nasdaq underperforming. US cash Tsy yields have also firmed a touch, still led by the 10yr, up 3bps to 3.47%.
  • AUD/USD is off 0.25%, back at the 0.6950 level, ~30pips down from earlier highs. NZD/USD is still weaker, but hasn't added greatly to losses, last at 0.6365/70.
  • A firmer USD is also evident in the USD/Asia space, with USD/CNH back close to 6.7350/6.7400 (+0.20%), while 1 month USD/KRW is around 1241 (+0.20%). Hints that the BoK may now pause providing some USD support against the won, albeit at the margins.

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