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USD Weakness As E-Minis Power On

FOREX
Broader USD weakness came to the fore overnightas e-minis powered to fresh all-time highs with the S&P 500 contract topping 3,500 for the first time. Before that, the latest uptick in U.S. Tsy yields provided some light support for the greenback, while also promoting JPY underperformance. This dynamic pushed JPY to the bottom of the G10 FX table for the duration of the Asia-Pac session.
  • Idiosyncratic risks for the Antipodeans, namely Sino-Aussie trade tensions and continued cyber-attacks on the NZX financial markets, are being at least partially negated by flows surrounding foreign demand for this week's ACGB & NZGB syndications, ahead of their respective settlements, which fall due next week.
  • USD/Asia is mixed, with USD/CNH ticking lower, but operating within the confines of Thursday's range.
  • Jackson Hole remains in focus on Friday, with a speech from BoE governor Bailey a highlight. French CPI, Canadian GDP, US personal income/spending and the MNI Chicago Business Barometer provide the data highlights.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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