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USDCAD TECHS

Needle Still Points South

US TSYS

Yields Bounce as Equities Make New Monthly Highs

AUDUSD TECHS

Heading North

EURJPY TECHS

Bull Rally Accelerates

COLOMBIA

Economists Survey Raises 2021 CPI Forecast To 4.9%

DOLLAR-YEN
DOLLAR-YEN: USD/JPY sits at Y107.08, has already shed 41 pips in reaction to an
SCMP source story pointing to no progress on key issues in deputy-level
U.S.-China trade talks. The publication triggered broad-based risk-off flows,
allowing the yen to benefit from its safe haven status.
- The pair added 39 pips Wednesday as a stronger that expected PBoC fix and
press reports suggesting that China is open for a limited trade deal with the
U.S. supported risk appetite. The upswing was sustained in NY hours amid
recovery in DXY, owing to higher U.S. Tsy yields & a firmer S&P500.
- Bears keep an eye on the nearby support zone at Y106.96-90, which hosts the
low of Sep 24, 38.2% retracement of the Aug 26 - Sep 18 rally & the 50-DMA. A
clean dip through that region would open up Y106.48/47, which represent the Oct
3 low/50% retracement of the aforementioned move. Bull look for a break above
the 100-DMA, which kicks in at Y107.59.
- Japanese PPI and core machine orders are awaited later today, while BoJ
Governor Amamiya will speak at a conference in Tokyo.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com