This report outlines daily FX market developments, emphasizing wait-and-see sentiment ahead of the FOMC meeting and persistent challenges for the JPY despite BoJ action.
Key Takeaways
- 1.Markets are exhibiting caution ahead of the upcoming FOMC meeting, with USD supported by sticky risk premia.
- 2.BoJ hiking rates to 1% failed to strengthen JPY significantly, as market skepticism persists regarding BoJ policy tightening speed.
- 3.BRL remains constructive due to high carry and positive growth, though election-related volatility is anticipated.
Table of Contents
- Americas FX Morning Bullets
- EUR-USD recovered from early softness as risk appetite improved, with European equities moving higher
- The AUD has recovered lost ground this morning after underperforming overnight
- Disclosure appendix
- Analyst Certification
- Important disclosures
- Foreign exchange: Basis for financial analysis
- Definitions for currency trades on DFs and NDFs
- Distribution of currency trades
- Additional disclosures
- Production & distribution disclosures
- Disclaimer
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Authors
Nick AndrewsTom WookeyClyde Wardle
Securities
EUR-USDUSD-JPY
Themes
Central Bank Policy DivergenceGeopolitical Risk
Regions
GlobalAsia PacificEuropeGermanyAustraliaJapan