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More Outright Bund Call Buying

BRAZIL

BRL Remains Anchored by Expected BCB Hawkishness

MEXICO

Citi Survey, Auction Results Due

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  • The USD is ebbing off the overnight highs, with the USD Index back below the 50-dma. Greenback weakness has helped EUR/USD recover off the overnight lows of 1.1799, with the Tuesday high at 1.1846 now within range. Markets need to close above here to confirm a reversal, after which focus will turn to key resistance at the 1.1909 level.
  • Persistent oil strength continues to work in favour of the NOK, which outperforms all others in G10. This puts USD/NOK on track to take the Tuesday low at 8.5739 ahead of the 200-dma at 8.5550.
  • Canadian CPI due Wednesday is expected to creep higher, mimicking the US release yesterday with median core CPI seen inching up to 2.7% Y/Y - matching levels last seen in 2008. USD/CAD remains in a short-term uptrend, with 50-dma support at 1.2590 providing some support.
  • US Empire manufacturing, import/export price indices and industrial production data also cross. ECB's Schnabel and Lane are both due to speak.