EURGBP TECHS: Pierces Resistance

TRUMP: IRAN CONFLICT IS WORKING OUT VERY WELL - [RTRS]

• Date $MM Issuer (Priced *, Launch #)
• 08/03 $2.45B #BMW $650M 2Y +53, $500M 2Y SOFR+64, $550M 3Y +63, $300M 3Y SOFR+80, $450M 5Y +83
• 08/03 $2B #Quanta Services $500M 3Y +55, $750M 7Y +80, $750M 10Y +90
• 08/03 $800M #Public Service Colorado $150M tap 5/34 +67, $650M 30Y +100
• 08/03 $750M #Peco Energy 5Y +60
• 08/03 $Benchmark BAT Capital 7Y +80, 10Y +90

• The risk on impulse from weekend reports of a pause in US strikes and renewed discussions with Iran further weighed on the USD index early Monday. This dynamic played into the post-Fed narrative of a softer greenback, helping the DXY extend its pull lower to around 2%. This initial weakness for the dollar was once again driven by the dramatic shifts with have been seeing for USDJPY, which printed as low as 155.23 overnight.
• However, a subsequent stabilisation for USDJPY and headlines remaining peace negotiations remaining uncertain, the DXY has since edged back towards the 100 mark, from prior session lows of 99.42.
• Statements from both the US Treasury and the Japan’s MoF on coordinated intervention will keep high attention on the yen moving forward, with initial BOJ accounts data pointing to record levels of intervention late last week. USDJPY’s May 06 low of 155.04 will remain a key short-term point of focus.
• Swiss CPI was on the softer end today keeping recent pressure on the low yielders still a viable narrative for the Swiss Franc. Having flagged the countering narratives regarding FX intervention, CHFJPY’s 4% dip to 193.50 is noteworthy, while EURCHF has rallied back towards firm resistance and the year’s highs at 0.9350, which held last week.
• Elsewhere, relative Aussie weakness saw the likes of AUDJPY and AUDNZD reach new pullback lows today, and the significant bump lower for energy prices has weighed notably on the Norwegian krone, with NOKSEK currently down 0.5% as we approach the APAC crossover.
• US trade balance, factory orders and JOLTS data are due Tuesday, while US employment is scheduled Friday.