March 28, 2022 01:39 GMT
The greenback sits atop the G10 FX pile at the start of a new trading week.
- JPY has tumbled to the bottom of the same rankings on the back of the previously outlined enforcement of the top end of the BoJ’s permitted 10-Year JGB yield trading band, lending further support to the greenback as USD/JPY surges to fresh multi-year highs on continued BoJ policy divergence vs. DM central bank peers.
- Elsewhere, there is a bit of defensive tone (pullback in oil markets & pressure on Chinese equities amid a two-stage lockdown in the Chinese city of Shanghai is garnering most of the attention on the headline front), while regional reaction to Friday’s uptick in U.S. Tsy yields is also underpinning the wider USD.
- The likes of the NOK & CAD are struggling with lower oil prices.
- The Asia-Pac docket is virtually non-existent on Monday, leaving headlines front & centre.
- Looking ahead, Monday’s focus will fall on central bank speak from ECB’s Rehn & BoE Governor Bailey, with lower tier economic data due from across the globe. Elsewhere, the latest Russia-Ukraine summit in Turkey will garner interest, although there is little in the way of expectations re: a meaningful breakthrough between the two nations.