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10 Apr 2013
Forex Flash: JGB´s in focus in absence of major European catalysts - TD Securities
FXstreet.com (Barcelona) - In the absence of major catalysts from Europe, TD Securities analysts feel that it’s worth highlighting that JGB futures saw another brief suspension of trading in the London morning session.
They see that this follows a similar action last week and reflects the post-BoJ sell-off as investors sell JGBs and move into other assets, including EM bonds and currencies. They see that the result is a generalized rally in the equity markets and EMFX, and stronger EUR/USD (1.31 at the time of writing). They add that the mixed Chinese trade report overnight did not do much to the direction of the pair. In the background, tensions continue to be high in the Korean peninsula as Pyongyang appears to be edging closer to a missile launch, though Korean markets were seemingly little affected. The focus today will be on the FOMC minutes and President Obama’s 2014 Budget.
They see that this follows a similar action last week and reflects the post-BoJ sell-off as investors sell JGBs and move into other assets, including EM bonds and currencies. They see that the result is a generalized rally in the equity markets and EMFX, and stronger EUR/USD (1.31 at the time of writing). They add that the mixed Chinese trade report overnight did not do much to the direction of the pair. In the background, tensions continue to be high in the Korean peninsula as Pyongyang appears to be edging closer to a missile launch, though Korean markets were seemingly little affected. The focus today will be on the FOMC minutes and President Obama’s 2014 Budget.