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Little in the way of notable headline flow left G10 FX happy to hug tight ranges. DXY hovered just above multi-year lows as the greenback underperformed in Asia morning (BBG trader sources cited USD sales by momentum based accounts). That said, USD recovered somewhat in sync with renewed demand for USD/JPY. The pair showed below Aug 5/18 lows of Y105.30/28 before trimming losses and then climbing back into positive territory, after falling for three straight days.

  • USD/CNH edged to a fresh multi-month low only to recoil thereafter, snapping its three-day losing streak. Likewise, USD/KRW touched its worst levels since March, before nearly erasing losses.
  • USD/IDR slipped ahead of today's monetary policy decision from BI, failing to attack the 100-DMA, which capped gains twice this month. Participants watched the 50-DMA threaten to break above the 200-DMA.
  • USD/THB crept higher as minutes from the latest BoT MonPol meeting noted that a sharp baht appreciation could derail Thailand's economic recovery, with policymakers closely watching FX markets.
  • Coming up today we have UK, EZ (f) & Canadian inflation data, FOMC Jul MonPol meeting minutes and a speech from Fed's Barkin.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com