- The yen rallied for a third consecutive day as traders continue to bet on the possibility for the Bank of Japan to deliver a rate hike as soon as their next meeting. The pair currently trades lower around 154.64 as many investors unwind their carry trades, highlighting the short positioning of the market in JPY, now creating further pressure for Tokyo to support the currency. Several Hedge funds have been discouraged by high premiums to buy put options ahead of next week’s BOJ meeting, according to traders.
- The US Dollar remains steady this morning, with the Dollar-Index trading just under 104.50. US politics continue to make the headlines as Kamala Harris leads Donald Trump 44% to 42% according to a poll made by Reuters/Ipsos. Joe Biden is expected to address the nation later today.
- In Europe, the focus today will be on the PMIs release across various regions to gauge the health of the economies. Eurozone, Germany, France and UK are in the spotlight.
- The euro currently trades at 1.0840 against the greenback, after dropping from near 1.09 yesterday following yesterday’s $69 billion, 2-year US Treasury auction. Cable currently trades below 1.29 at 1.2884 ahead of today’s PMIs.
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