Major overnight headlines:
• US 10-yr yield rises to more than 2.75% overnight before falling back, USD firm versus most developing market FX
• ECB’s Nowotny appears to support new ECB guidance on rates, says “calmed markets considerably”, Bloomberg
• Swedish industrial output plunges in May, down 2.6% MoM alongside chunky downward revisions to April data
• German exports fall 2.4% MoM in May versus a rise of 0.1% expected
• Turkish central bank initiates monetary tightening to stem TRY weakness, says duration depends on FX, Bloomberg
Read the full report: FX Daily
BMO