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JPY outperformance likely fuelled by positioning
JPY in full focus after sharp correction stronger
The Japanese Yen strengthened sharply, as markets priced in an increasing probability that the Bank of Japan will shift policy as soon as this month’s meeting.
The Reserve Bank of India kept its key repo rate on hold at 6.50% in its December 2023 meeting as expected, while easing some liquidity measures at the margin.
JPY boosted by speculation that December BOJ meeting could be “live”
Oil prices fell sharply by more than 4%, with WTI breaking below $70/bbl, while Brent fell under $75/bbl.
Short-end yields down sharper in EZ encourages EUR/USD retracement
US jobs openings fell to the lowest since 2021 to 8.7 million, from a downwardly revised 9.4 million.
USD is staging modest rebound ahead of NFP report
The Dollar strengthened by 0.4% ahead of key non-farm payrolls data. The exact catalyst was not entirely clear during thin liquidity through the December period.
JPY is benefitting from dovish repricing of ECB & Fed policy expectations
US yields pretty much brushed off Powell’s comments, with 10-year yields declining below 4.2% even as Powell spoke.
Below 50 manuf. PMI for China in November
We believe markets would view India's recent state election results as a positive for policy continuity in 2024’s General Elections.
USD selling subsides after largest drop in a year
The US Dollar regained some ground yesterday, as Eurozone’s inflation came in lower than expected, while China’s PMIs disappointed.
China PMI surveys & EZ inflation highlight risks to continued USD sell-off
Fed speakers were somewhat more divergent in tone, following Governor Christopher Waller’s market moving speech earlier in the week.
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