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USD/TRY Extends Gains Following Wednesday Rally

CROSS ASSET
  • G10 FX trades relatively muted Thursday morning with major pairs respecting recent ranges. Antipodeans top the pile, while the Dollar Index sits a touch lower following the Asian session and has pared some of yesterday’s gains.
  • In EM, USD/TRY trades 0.5% higher Thursday following yesterday’s notable 7.5% rally while PLN is the other notable underperformer in the space after the NBP's Kotecki appeared to moderate his hawkish views amid signs of weakness in the economy. Elsewhere, ZAR sees gains across the board ahead of trade balance data later today while HUF and CZK trade marginally in the red against the EUR. Mexico CPI data is the key release in EM, with prices seen moderating to 5.88% y/y in May.
  • The RBI delivered a widely expected unchanged rate decision, with Governor Das stressing that the RBI’s actions are a pause in policy – and not a pivot. USD/INR deals in minor positive territory but remains off the overnight best at 82.6188.
  • Weekly jobless claims data provides the highlight of the NY docket today. It is also worth noting that post-meeting comments from BoC Deputy Governor Beaudry will probably get more attention than usual, after the Bank caught most off guard yesterday. The observance of the Corpus Christi holiday may limit liquidity a little today, with some participants across Germany, Spain, Portugal, Austria & Poland set to take a holiday.

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