Citi – Europe Open – Here we go! FXWW

From the FXWW Chatroom: It is another disappointing day for USD bulls in Asia as the yield on 10y US Treasury bonds rose above 3% intraday in early Asia

The pain continues for USD shorts as it has made gains against all G10 currencies with AUD and NZD again the biggest losers, despite a holiday in the two countries – see table below. US 10y yields are now trading at the 3% level and equities in Asia slipped, following the US counterparts, on the back of a collection of earnings developments that have cast a cloud over global growth optimism.

These conversations are likely to continue as the day progresses, given a sparse global economic calendar. Major events are limited to central bank speeches for CAD & EUR and WTI’s weekly DoE inventory report.

In EM, however, there could be fireworks at TRY’s central bank meeting. Consensus expects a 50bps rate hike in the late liquidity lending rate to 13.25%. This comes amid softer economic activity and the added uncertainty of early elections. GTQ’s central bank also meets; no change expected.

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