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25 Jul 2024

Yen trends

• Mixed markets. Equities dip again & while long-end yields declined base metal & energy prices ticked up. USD consolidates but AUD still under pressure.• US data. Q2 US GDP higher than predicted. But forward indicators suggest this is a false dawn. US PCE deflator due tonight. US Fed meets next week.• JPY trends. JPY’s sharp rebound has been a factor weighing on the AUD. Q2 Australian CPI released next week. Will this help the AUD recover? Negative vibes across risk assets have generally continued, though there were a few positive signs starting to emerge. Q2 US GDP was the...

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Equity Unwind Sparks Risk Retreat

Risk-sensitive currencies are staging a broad retreat as losses in stock markets continue. North American equity futures are pointing to a lower open after suffering the biggest selloff in two years during yesterday’s session, with a series of earnings misses intersecting with broader economic dynamics to trigger a headlong rush out of “megacap” names that have been the prime beneficiaries of the artificial intelligence craze. Safe-haven currencies are appreciating, front-end Treasury yields are inching lower, oil prices are down, and the broader commodity complex is coming under renewed selling pressure. The proximate trigger for the selloff isn’t entirely obvious, but...

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