– With Tokyo shut, Asia had a very quiet session. RBA comments had little impact on the Aud, but weaker than expected Chinese PMI figures put some pressure on this currency later on. Of note was the announcement by the SAFE: they announced new measures to tighten rules on capital inflows. This took UsdCnh from historical lows of 6.1525 to a high of 6.1900 in a scramble of Usd short covering by various Banks and Macro Funds.
– European markets opened and remained extremely quiet with the U.K. being shut for a Bank Holiday. EC data came in slightly better than expectations but with hardly any impact on currencies. Swedish data disappointed which pushed the Sek lower across the board, but flows across all currency pairs were extremely minimal.
Click here to read the full report: FX Daily
BMO