USD index narrows gap with 2020 low - Most....>

FOREX: USD index narrows gap with 2020 low

- Most currency pairs in DMFX space have respected recent ranges, with USD/JPY

in particular trading in a particularly muted fashion. After inching to new

multi-year highs Wednesday, EUR/USD has kept the pressure pointed higher, but

resistance at $1.16 has held firm so far. Should $1.16 give way, the may

pressure the USD index to new 2020 lows - the key support here is 94.650 for the

DXY - last printed in early March.

- Newsflow has been few and far between, resulting in downward pressure on

currency volatility - short-end implied vols are almost uniformly lower in G10.

CAD is mildly stronger as oil continues to creep higher, but NOK isn't following

suit and trades slightly weaker on the session.

- Rate decisions from South Africa and Turkey cross today - Turkey are seen

keeping rates unchanged at 8.25%, while the South African central bank are

expected to cut the key policy rate by 25bps to 3.50%.

- Weekly US jobless claims data is the calendar highlight Thursday, with

Eurozone consumer confidence the only other release of note.