[MARKET ANALYSIS] G7 FX trade muted, CNH weakens following the stronger fix by the PBoC
Importance
Level 1
- DXY initially sold off at the start of the APAC session before rebounding back above 98.50 as EU-US tensions remain at the forefront of traders' minds.
- EUR/USD remain in a tight range following its outperformance in Tuesday’s session, despite a lack of drivers for the euro.
- GBP/USD oscillates around 1.3440 ahead of the UK inflation report. The ONS released its employment report in Tuesday’s session, which saw the initial upside in cable unwind throughout the session.
- USD/JPY dips below the 158 handle as the recent turmoil in JGBs briefly calms.
- Antipodeans trade muted, with the Kiwi consolidating following recent gains.
- CNH weakens, with USD/CNH returning to the 6.96 handle, initially spurred by the stronger fixing (7.0014 vs prev. 7.0006).
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