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FX options wrap - FX signals, AUD up, EUR down, expensive

BUZZ-FX options wrap - FX signals, AUD up, EUR down, expensive USD weakness and risk appetite have been weighing on FX option implied volatility and there is little to change that narrative unless Thursday's U.S CPI data beats expectations. EUR/USD implied volatility has almost erased all of the sharp gains seen after the French election was first called in mid June, while risk reversals contracts have given back most of their additional risk premium for EUR puts over calls.
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Stage could be set for a deeper USD/JPY adjustment

BUZZ-COMMENT-Stage could be set for a deeper USD/JPY adjustment July 8 (Reuters) - As a result of Friday's soft U.S. employment data and falling U.S. yields there might be potential for a larger pullback in USD/JPY. A full-blown trend reversal is unlikely unless there is a significant shift in the fundamental and technical backdrop, changing the yen's fortunes.
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Wall Street futures take a breath before busy week

GLOBAL MARKETS-Wall Street futures take a breath before busy week Asian stock markets: https://tmsnrt.rs/2zpUAr4 Euro steadies as France heads for hung parliament Stocks underpinned by hopes for Sept Fed rate cut Week features US CPI data, Fed's Powell, corporate earnings Recasts for Wall Street open, adds quote in paragraph 8, updates prices throughout By Nell Mackenzie LONDON, July 8 (Reuters) - Wall Street futures were little changed on Monday, as investors prepared for a busy week that will
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Euro steadies as investors weigh up French gridlock; dollar soft

FOREX-Euro steadies as investors weigh up French gridlock; dollar soft Updates prices By Kevin Buckland and Amanda Cooper TOKYO/LONDON, July 8 (Reuters) - The euro steadied on Monday, recovering overnight losses that stemmed from projections from France's election which pointed to a hung parliament, while the dollar remained soft. The dollar remained on the back foot following surprisingly soft U.S.
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The two most important factors influencing currencies today

BUZZ-COMMENT-The two most important factors influencing currencies today July 8 (Reuters) - The two most important factors influencing currencies today are the robust state of risk appetite that has lifted many stock indexes to record highs, and the quiet state of FX markets which has seen volatility slump in major markets . When combined, these two factors support the establishment of carry trades which have been further enhanced by favourable moves in the direction for the few currencies that
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French political deadlock, dour Asia close take shine off world stocks

GLOBAL MARKETS-French political deadlock, dour Asia close take shine off world stocks Asian stock markets: https://tmsnrt.rs/2zpUAr4 Euro down a fraction as France heads for hung parliament Stocks underpinned by hopes for Sept Fed rate cut Week features US CPI data, Fed's Powell, corporate earnings Adds quote in paragraphs 5-6, updates prices throughout By Nell Mackenzie and Wayne Cole LONDON/SYDNEY, July 8 (Reuters) - World stocks held just below record highs on Monday, with sentiment slightly
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Euro steadies as investors weigh up French gridlock; dollar soft

FOREX-Euro steadies as investors weigh up French gridlock; dollar soft Adds comment, refreshes prices at 0912 GMT By Kevin Buckland and Amanda Cooper TOKYO/LONDON, July 8 (Reuters) - The euro steadied on Monday, recovering overnight losses that stemmed from projections from France's election pointed to a hung parliament, while the dollar remained soft.
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Japan futures hit 8-week low on stronger yen, weak physical prices

RUBBER-Japan futures hit 8-week low on stronger yen, weak physical prices Updates with closing prices, adds analyst quote, details SINGAPORE, July 8 (Reuters) - Japanese rubber futures tumbled to their lowest in nearly eight weeks on Monday, as a stronger yen and weaker physical rubber prices in top producer Thailand weighed on sentiment. The Osaka Exchange (OSE) rubber contract for December delivery JRUc6 , 0#2JRU: closed down 7 yen, or 2.16%, at 317.1 yen ($1.97) per kg.
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Euro slips on French gridlock; dollar weak after payrolls surprise

FOREX-Euro slips on French gridlock; dollar weak after payrolls surprise Updates prices and adds details By Kevin Buckland TOKYO, July 8 (Reuters) - The euro slipped on Monday after projections from France's election pointed to a hung parliament amid an unexpectedly strong showing for a left-wing alliance, spawning fresh uncertainty over the country's fiscal outlook.
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Bank of Japan signals progress in wage, price hikes

UPDATE 3-Bank of Japan signals progress in wage, price hikes Big firms' pay hikes spreading to smaller firms, says BOJ BOJ says more firms passing on rising wage costs Upbeat view may heighten case for near-term rate hike Japan average base pay rises at fastest pace in 31 years Robust inbound tourism masks households' thrifty spending Adds quotes by BOJ Osaka branch manager in paragraphs 8-9, service survey 14-17 By Leika Kihara TOKYO, July 8 (Reuters) - The Bank of Japan said wage hikes were br
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Asian shares edge higher, euro dogged by French political deadlock

GLOBAL MARKETS-Asian shares edge higher, euro dogged by French political deadlock Asian stock markets : https://tmsnrt.rs/2zpUAr4 Euro down a fraction as France heads for hung parliament Stocks underpinned by hopes for Sept Fed rate cut Week features U.S. CPI data, Fed Powell, corporate earnings Updates prices By Wayne Cole SYDNEY, July 8 (Reuters) - Asian stocks inched higher on Monday as investors grew more confident about a September U.S.
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Rupee up slightly as Asia FX takes a 'breather' on dip in US bond yields

INDIA RUPEE-Rupee up slightly as Asia FX takes a 'breather' on dip in US bond yields By Jaspreet Kalra MUMBAI, July 8 (Reuters) - The Indian rupee was mildly stronger on Monday, tracking a rise in its Asian peers, which were aided by a decline in U.S. bond yields after fresh economic data boosted hopes of rate cuts by the Federal Reserve later this year.
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Japan's Nikkei posts limited gains as profit-taking weighs

Japan's Nikkei posts limited gains as profit-taking weighs By Brigid Riley TOKYO, July 8 (Reuters) - Japan's Nikkei share average edged higher on Monday, with further gains capped by profit-taking after both main stock indexes touched fresh all-time peaks last week. The Nikkei .N225 rose 0.21% to 40,999.80 by the midday break, while the broader Topix .TOPX was down 0.13% at 2880.32. Market players have rushed to secure profits after the benchmark Nikkei index rose sharply last week to hit an all
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USD/JPY capped? Lower may be path of least resistance

BUZZ-COMMENT-USD/JPY capped? Lower may be path of least resistance July 8 (Reuters) - USD/JPY fell another leg Friday on a weaker-than-expected U.S. jobs report which sent Treasury yields lower nL1N3IV0WE , nL1N3IX0QE . With yen-funded summer carry trades finally on the wane, JPY could be on the cusp of a significant upward retracement. America's cooling job market has put a September Federal Reserve rate cut back on the table FEDWATCH .
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Asia shares firm, euro dogged by French political deadlock

GLOBAL MARKETS-Asia shares firm, euro dogged by French political deadlock Asian stock markets : https://tmsnrt.rs/2zpUAr4 Euro down a fraction as France heads for hung parliament Stocks underpinned by hopes for Sept Fed rate cut Week sees U.S. CPI data, Fed Powell, corporate earnings Updates prices, adds Chinese stock movements in paragraph 10 By Wayne Cole SYDNEY, July 8 (Reuters) - Asian stocks inched higher on Monday as investors grew more confident about a September U.S.
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Australian dollar holds gains as yields attract; kiwi edgy into RBNZ meet

Australian dollar holds gains as yields attract; kiwi edgy into RBNZ meet SYDNEY, July 8 (Reuters) - The Australian dollar hovered near a six-month high on Monday, drawing support from favourable yield differentials, although it lost some ground on the kiwi ahead of a central bank policy meeting in New Zealand. The Aussie AUD=D3 was holding at $0.6746, having jumped 1.2% last week to as far as $0.6753, the highest since early January.
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Japan futures down on stronger yen, lower physical prices

RUBBER-Japan futures down on stronger yen, lower physical prices SINGAPORE, July 8 (Reuters) - Japanese rubber futures fell for a fourth consecutive session on Monday, as a stronger yen weighed on the market, while weaker physical rubber prices in top producer Thailand added pressure. The Osaka Exchange (OSE) rubber contract for December delivery JRUc6 , 0#2JRU: was down 4.8 yen, or 1.48%, at 319.3 yen ($1.99) per kg as of 0145 GMT.
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Japan's base pay rises by most in 31-years, part-time workers see robust gains

UPDATE 2-Japan's base pay rises by most in 31-years, part-time workers see robust gains Regular pay rises 2.5% in May yr/yr, fastest since 1993 Adjusted for inflation, wages fall for 26th straight month Part-time workers' pay rising, boding well for consumption Recasts and adds examples of gains for part-time workers from paragraph 10 By Tetsushi Kajimoto TOKYO, July 8 (Reuters) - Japanese workers saw their average base pay climb 2.5% in May - the fastest pace in 31 years as bumper pay hikes off
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Japan's base pay rises by most in 31-years, part-time workers see robust gains

UPDATE 2-Japan's base pay rises by most in 31-years, part-time workers see robust gains Regular pay rises 2.5% in May yr/yr, fastest since 1993 Adjusted for inflation, wages fall for 26th straight month Part-time workers' pay rising, boding well for consumption Recasts and adds examples of gains for part-time workers from paragraph 10 By Tetsushi Kajimoto TOKYO, July 8 (Reuters) - Japanese workers saw their average base pay climb 2.5% in May - the fastest pace in 31 years as bumper pay hikes off
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USD/JPY on lower plane with US yields lower, trend shift?

BUZZ-USD/JPY on lower plane with US yields lower, trend shift? USD/JPY 160.58-81 EBS in Asia, on a lower plane, well off recent highs Follows a fresh leg down in US rates following a weak US jobs report Friday Higher than expected unemployment, revisions down in past non-farm payrolls Hopes for Fed rate cuts up, seen likely in September, another in December?
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