DAILY FX WRAP:
EUR briefly broke above 1.17 for the first time since Aug’15 with support initially from firm German IFO survey’s this morning, while much of the upside had stemmed from cross buying in EUR/GBP which is just north of 0.8950.
JPY notably weaker across the board with USD/JPY breaching 111.00 amid the surge higher in equity markets post a slew of strong financial results from large US firms. Additionally, with global bond yields tracking higher, fresh YCC affirmation is likely with the Japanese 10Y yield looking at 0.1% yet again.
NZD saw rare selling pressure in Asia trade amid news that New Zealand Officials stated that a contagious disease has been found in 14 cattle. With New Zealand being one of the top five largest exporters of beef, this weighed on the Kiwi dollar. The volatility in NZD led into early European trade, and despite NZD/USD bouncing ahead of 0.74, a Kiwi recovery was not seen in AUD/NZD, trading though overnight highs in the European session. A 1.07 test in AUD/NZD is possible as investors eye comments from RBNZ Assistant Gov. McDermott who may look to tame the NZD advances.