ING’s Francesco Pesole writes that markets are increasingly viewing 162.0 in USD/JPY as a new intervention threshold, helping explain the sharp intraday drop after the pair neared 162.
The Indian Rupee (INR) is expected to open higher against the US Dollar (USD) on Monday. On Friday, Indian markets are closed for Muharram celebrations.
Commerzbank analysts highlight a weakening Gold market, with prices briefly slipping below USD 4,000 per troy ounce before recovering.
Italy 5-y Bond Auction dipped from previous 3.16% to 3.03%
OCBC’s FX strategists Sim Moh Siong and Christopher Wong note the US Dollar (USD) rally has paused as global risk appetite improves, but highlight that sticky United States (US) inflation and steady labour data keep hawkish Federal Reserve (Fed) risks alive.
Italy Trade Balance non-EU: €3.843B (May) vs previous €3.846B
The Korean Won (KRW) trades higher on Friday after a knee-jerk reaction at the 1,550 level against the US Dollar (USD), triggering speculation about an intervention by the South Korean Ministry of Finance.
Italy 10-y Bond Auction dipped from previous 3.77% to 3.63%
Italy 10-y Bond Auction: 1.63% vs previous 3.77%
Commerzbank’s Tatha Ghose warns that CBRT governor Karahan is again signalling premature monetary easing, considering a return to one-week repo auctions that would lower effective funding costs toward the 37% policy rate.
Rabobank’s Senior Macro Strategist Bas van Geffen highlights renewed security concerns for Oil as a cargo ship was hit near Oman, raising questions about safety in the Strait of Hormuz. Despite this, Brent trades around $73.8, at the lower end of its weekly range.
United Overseas Bank’s Quek Ser Leang and Lee Sue Ann keep a constructive view on USD/JPY, noting the pair has held above strong support at 161.10 while trading quietly around 161.78.
