Citi

Equities continue to be the main mover in markets, with Nasdaq futures down another 1% in Asia hours after Monday’s cash session saw the index close -2.6% - this has taken futures back below the 100d MA at 13253. Moves here appear to have come as a result of the market once again repricing higher inflation risks post NFP and ahead of Wednesday’s US April inflation data. FX in comparison has traded relatively flat in Asia with little in the way of idiosyncratic market moving headlines or direction from the USD.

Looking ahead, technical levels will be increasingly watched in Nasdaq and various Asia tech heavy indices, which are at risk of breaking even lower with supports having given. Data in the meantime is unlikely to be a mover, with Germany/Eurozone ZEW survey the only G10 print of note. Central bank speak in contrast will continue to be watched with a range of speakers due in USD, EUR and GBP. In EM, CZK CPI and BRL BCB minutes & inflation are the only points of note.

CIBC

Weak tech stocks dragged the rest lower, Nasdaq e-minis down more than 1.1%. USD was mixed, ended the morning weak against EUR, AUD, NZD and CAD. Despite the risk off, USDJPY was bid the moment Tokyo kicked off. It was obvious that some constant demand for EURJPY flow too.

USDJPY got to 108.985, there is a chatter of sellers awaiting above 109.00, same names as those from yesterday. Stop buy orders 109.20 thereafter. In options, $830mio worth of 109.00 put strikes and $1.5bn of 108.00 strikes roll off today. EURUSD found support near 1.2130, the trendline that broke upside last Friday post-NFP. We traded briefly to 1.21265 then bounced back when EURJPY got scooped up. Interests in EURUSD could also be linked to two large EUR put strikes mature today, EUR1.35bn at 1.2125 and EUR1.2 at 1.2100. Upside EUR1.2bn at 1.2190. Approaching late morning, the single currency traded towards top of day’s range. Suspect there will be sell orders above 1.2200.

UK announced easing of lockdown, return of indoor socialising and dining from May 17. GBPUSD moved higher initially, stalled at 1.4134 following gossip of profit taking offers above 1.4150 from fast money names. Tight ranges seen in AUD and NZD. Report that Dalian Commodity Exchange to strengthen daily supervisions, severely punish various violations and safeguard market order, iron ore futures weakened and AUDUSD slipped initially. NZDUSD tracked the AUDUSD.

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.

High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% and 65% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.