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Fixed income rout continues, EUR climbing higher – TDS

FXStreet (Barcelona) - Paul Fage, Senior Emerging Markets Strategist at TD Securities, summarizes the financial market performance during the European trading session, noting that EUR/USD has continued to climb on support from yields.

Key Quotes

“Yesterday’s rout in fixed income has continued today and EURUSD has continued to move higher; it is up 0.75% on the day and currently trading around 1.1360.”

“BOJ Harada said today that excessive yen strength has now been corrected and the currency “may have come to a very good place”. USDJPY is down 0.1%. The AUD is the G10 underperformer, down 0.5%, with the overnight economic data coming in below expectations.”

“In EM FX most currencies are weaker against USD, the main exceptions being CE3, which have been helped higher by the stronger EUR. USDRUB is up 1.5% as tensions increase in East Ukraine and oil prices weaken.”

“Fixed income continues to weaken across the board; 10y bunds +5.9bps having bounced off 1.00%, and 10y UST +3.2bps.”

“Asian equities closed mixed. The Shanghai Composite enjoyed a roller-coaster ride today. Although it closed +0.76%, at one point it was down more that 5%. European equities are weaker with Dax –1.4%.”

“Brent Oil is down 0.2%. Precious metals are mixed, base metals are weaker.”

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