G10 FX Daily Report

The report maintains a tactical long USD bias against EUR, GBP, and CAD, driven by rising US yields and a defensive risk stance. The author is avoiding USDJPY due to intervention risks but remains short GBP and CAD following disappointing inflation data.

Key Takeaways

• 1.Tactical bullish bias on USD remains in favor as US yields climb to multi-year highs and equity markets show signs of weakness.
• 2.Sterling (GBP) remains under pressure following soft UK CPI data and a perceived political shift to the left, tempering expectations for BOE rate hikes.
• 3.Short CAD positions were increased as core inflation metrics in Canada fell to their lowest levels in five years, supporting a 'BOC on hold' stance.

Table of Contents

• JPY
• CHF
• CAD

Document Preview

Page 1 of 3

Subscribe for full accessStart Free Trial