Position rebuilding having little impact on G10 FX, so far
A stabilisation in US Treasury yields, with the 10-year yield settling back below 2.5% after a successful 7-year auction, has driven a cautious rebound in risk positions across markets, with a number of EM currencies rebounding as hedges are unwound and opportunistic buyers come in. In G10 FX, the price action has been more muted, with USDJPY long positions being reestablished but commodity currencies failing to rebound.
Read the full report: FX Daily
BNP Paribas