FXWW News/Open/Wrap

Emerging markets finally take a breather

  • South American EMs were relatively quiet overnight but not before INR and TRY made fresh lows against the USD;
  • Profit taking also emerged in US Treasuries with dip-buyers emerging;
  • USD/JPY looks most interesting of the majors, with traders eyeing important technical levels ahead of 99.10;
  • AUD/USD recovered on the back of AUD/JPY buying and has managed to stabilise around .90 cents;
  • The GBP lost some of its gloss, with short-term profit takers the main driver after dovish comments from the BOE Weale;
  • EUR/USD has steadied around 1.3350 with decent orders reported 70 pips either side; buyers at 1.3280 and sellers near 1.3425.

I reduced my cable longs yesterday but am still long AUD/USD. USD/JPY seems to be the great unknown factor here; if it breaks higher then the USD is likely to gain across the board (at least once the cross flows have dried up).

I’m expecting a quiet day today given that EMs quietened down overnight.

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