European currencies are outperforming as we ap-proach the NA session, led by EUR and SEK with gains of 1.1%. The rally in EUR accelerated as EUR broke through the late October high at 1.3832. While there does not appear to be a specific catalyst for the move, yields are broadly higher but less so for the US 2Y. GBP and NOK are up while CAD, AUD and JPY are flat. EUR and GBP have risen to multi-year highs and JPY has broken to a new multi-year low, with USDJPY hitting 105 for the first time since October 2008. China’s money market rates are declining for the fourth consecutive session, and CNY contin-ues to make new highs. There are no US releases todayE.
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Scotiabank