G10 FX Daily Report

The report highlights UK political instability and sticky US inflation as primary market drivers. It suggests shorting CHF to fund AUD and USD longs while watching for JPY intervention near the 158-160 range.

Key Takeaways

• 1.UK political uncertainty is high as a leadership challenge against Keir Starmer looms, though the threshold for replacement has not yet been met with unified support for a single successor.
• 2.US inflation remains elevated and sticky, leading to a higher yield environment where the CHF is being used as a funding currency for long positions in AUD and USD.
• 3.The JPY market is approaching potential intervention levels (158-160), though current research suggests joint US-Japan intervention is unlikely.

Table of Contents

• G10 FX
• FUR
• JPY
• US Core CPI
• NOK
• Country Specific Disclosures

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