Free Trial

Yen, Sterling Lose Ground

FOREX

The yen went offered despite the absence of any major headline catalysts, with broader awareness of policy outlook divergence between the BoJ and its major peers lingering in the background. BBG trader sources pointed to leveraged short-covering in USD/JPY amid an uptick in U.S. Tsy yields. The rate extended gains over the Tokyo fix.

  • Sterling showed some weakness amid continued escalation in the UK-EU stand-off over the Northern Ireland protocol.
  • Commodity-tied FX found some poise as crude oil traded on a firmer footing. The NZD led gains as New Zealand eased restrictions in Auckland and confirmed that its largest city is on track to exit lockdown by month-end.
  • USD/CNH operates on a slightly firmer footing, even as China's trade surplus surged to a record amid robust overseas demand for Chinese goods. Imports growth was slower than expected.
  • A dearth of notable data releases today will be compensated by central bank rhetoric from Fed's Powell, Clarity, Harker, Bowman & Evans, ECB's Lane & Makhlouf as well as BoE's Bailey.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.