1. The era of overactive BOJ intervention is over.
2. Capital managers buy JGBs on an unhedged basis.
3. CHF is also no longer an EU-specific safe haven strategy.
4. Concerns about a US-Japanese trade war increase.
5. Widen trading band for 10-year yields or shorten the duration of assets purchased.
6. Kuroda starting to engineer the 10-year yield higher.
It’s a quiet week ahead. Key stats are limited to wage growth and unemployment numbers due out on Tuesday. While the focus will be on the claimant count and wage growth figures, any uptick in the unemployment rate would weigh.
Outside of the numbers, Brexit and political chatter from Parliament will continue to be the key driver for the Pound.
The GBP/USD ended...
1) European data released these last few days was generally encouraging, underpinning the common currency. Services output was upwardly revised in April, investors' confidence improved, and retail sales ticked higher. However, the European Commission downgraded growth forecasts for this year and the next, leaving inflation ones unchanged.
2) US data, on the other...
USD/CHF remains in positive territory despite a mixed risk profile in markets.
**Chinese Foreign Ministry spokesman Geng Shuang told a briefing on Wednesday that working out disagreements over trade was a "process of...