Its been a range bound morning for most of G10 FX as the market awaits the ECB and US CPI. Flows show broad-based USD buying across all client types. It seems USD shorts are being squared up ahead of the data, with flows showing buyers most prominent against both GBP, EUR and CHF.
Whilst NOK a clear underperformer, after headline inflation surprised to the downside falling to 2.79b from 3%. Whilst softer inflation in Sweden also seeing SEK selling from both Macro and real money names, although vol has been quick to trace lower as systematic supply persists - 1m last traded 4.5 with the 5y lows at 4.3 and ahead of the ECB this afternoon, 00 the desk this looks low.
Despite the lackluster price action in XAU, lower US yields has encouraged further buying there this morning. Whilst in EM, PLN the standout out with net sellers of PLN against both the USD and EUR today, no clear driver other than the NBP reiterating their dovish stance yesterday - otherwise in EM flows remain light.
An overall muted reaction across USDASIA pairs following the US CPI data. There was a quick pop in USDCNH towards 6.3950, but that got sold into quickly. Flows are light across pairs after the data. Earlier, the desk saw better sellers of 1.190099 and small buying in USDINR only.
top of page
Search
bottom of page
Comentarii