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USD/ZAR Extends Losing Streak to Six Consecutive Days

CROSS ASSET
  • NOK is the top performer in G10 FX following the stronger-than-expected inflation data this morning. The USD pared some of Thursday's losses through the APAC session as US Treasury Yields ticked higher, aiding a mild bid in the greenback. JPY is the weakest performer in the G10 space with USD/JPY firming above the 139.00 handle as BoJ officials are reportedly said to see little need to adjust YCC policy in June.
  • In EM, ZAR once again sits at the top of the EM pile seeing USD/ZAR extend its losing streak to six consecutive days and print at its worst levels in a month. USD/TRY trades 1.6% in the green amid confirmation of Hafize Gaye Erkan as the new central bank governor, replacing Sahap Kavcioglu in a move that may signal a return to more conventional monetary policy. The CBR rate decision is the key risk event in EM, with consensus calling for rates unchanged at 7.5%.
  • The DM data docket is thin today with the latest Canadian employment report providing the highlight.

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