JPY

• Market jitters. Geopolitics & ‘hawkish’ macro signals dampened sentiment & supported the USD overnight. AUD unwound yesterday’s uptick.• USD trends. The pricing in & enacting of the Trump policy agenda, coupled with geopolitical uncertainty, is a recipe for lingering USD strength.• Central banks. Odds of another near-term rate cut by the BoE & US Fed were pared back. Markets only fully discounting a RBA move by July. A few market jitters returned overnight with the rebound in risk sentiment late in the previous days trade fading. Concerns about an escalation in the Russia/Ukraine conflict is a factor keeping traders...

• Partial bounce. Various ‘Trump trades’ backpedaled overnight with US yields & the USD a little lower & equities higher. AUD & NZD benefited.• RBA trends. Latest research from the RBA shows monetary policy is just as potent here as elsewhere. But the RBA didn’t raise rates as high.• AUD impulses. Higher for longer RBA should be AUD supportive against EUR, NZD, CAD, & CNH. This can help counteract positive USD vibes. The post US-election ‘Trump trades’ paused for breath with many of the underlying assets backpedaling a little at the start of the new week. There was no major...