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Free AccessYield Retreat Helps Major Pairs Toward Key Levels
- Fading greenback following the Treasury yield curve here, as the 10y yield plumbs new lows and helps prop EUR/USD back toward the post-payrolls high on Friday at 1.0998 - which marks the interim resistance in the pair.
- A number of USD levels are now being tested, keeping market focus on 1.2770 in GBP/USD, 143.81 in USD/JPY - while EM currencies are outperforming, aiding MXN, HUF and others to new daily highs. Break of these marks into the Monday close would be carefully watched for position-setting ahead of Thursday's CPI print.
- Risk-on evident elsewhere, as the e-mini S&P adds to opening gains to show above intraday resistance of 4760.25, led by the Tech and consumer discretionary sectors, at the cost of defensive stocks and oil & gas names (pressured by softer WTI/Brent prices). Domestic focus shifts to the beginning of Q1 US earnings season, with close to 7% of the S&P 500 due this Friday and the next week.
- While the tech-led NASDAQ is outperforming, it's got the furthest to climb to re-test the cycle best of Dec28, with another 3% needed to hit that mark vs. a ~1.7% gap in the E-mini S&P.
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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.