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USDJPY Completes Round Trip Post-Powell, NZD Weakness Persists

FOREX
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  • USDJPY has unsurprisingly posted the largest range across the majors on Monday, as volatility remains high in the aftermath of last week’s US data and supposed BOJ intervention. Chair Powell described the latest data as adding to the FOMC’s confidence, which prompted a momentary blip lower for the greenback.
  • USDJPY trades close to unchanged around 157.90. The pair reached as low as 157.19 following Powell’s remarks, having printed an overnight high of 158.42 during the APAC session. Most notable support remains at 156.83, a Fibonacci retracement.
  • NZD underperforms across G10, falling 0.57% against the dollar as weaker-than-expected China GDP weighs at the margin. The AU-NZ 2yr swap continues to tick higher, now back at November 2020 levels which continues to bolster the AUD/NZD rally, rising to a fresh cycle high of 1.1136.
  • EURUSD tracks close to 1.0900 and 1.30 continues to cap the topside in GBPUSD, a level that would place cable at the highest level since July last year.
  • Scandinavian FX underperforms, with USDNOK trading 0.95% higher on Monday. In similar vein, there were some notable laggards in the EM space such as MXN, dropping over 1% given its beta to Trump election odds and ZAR falling 1.5%.
  • Eurozone Trade and German ZEW data crosses on Tuesday, before US retail sales and Canadian CPI highlight the economic calendar.
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  • USDJPY has unsurprisingly posted the largest range across the majors on Monday, as volatility remains high in the aftermath of last week’s US data and supposed BOJ intervention. Chair Powell described the latest data as adding to the FOMC’s confidence, which prompted a momentary blip lower for the greenback.
  • USDJPY trades close to unchanged around 157.90. The pair reached as low as 157.19 following Powell’s remarks, having printed an overnight high of 158.42 during the APAC session. Most notable support remains at 156.83, a Fibonacci retracement.
  • NZD underperforms across G10, falling 0.57% against the dollar as weaker-than-expected China GDP weighs at the margin. The AU-NZ 2yr swap continues to tick higher, now back at November 2020 levels which continues to bolster the AUD/NZD rally, rising to a fresh cycle high of 1.1136.
  • EURUSD tracks close to 1.0900 and 1.30 continues to cap the topside in GBPUSD, a level that would place cable at the highest level since July last year.
  • Scandinavian FX underperforms, with USDNOK trading 0.95% higher on Monday. In similar vein, there were some notable laggards in the EM space such as MXN, dropping over 1% given its beta to Trump election odds and ZAR falling 1.5%.
  • Eurozone Trade and German ZEW data crosses on Tuesday, before US retail sales and Canadian CPI highlight the economic calendar.