"The market appears to have gotten ahead of itself on the Chinese reserve diversification story at the end of last week," says Marc Chandler, global head of currency strategy at Brown Brothers Harriman. Still, he noted short-term strategies "will likely favor selling into dollar bounces." In New York trading, USD/JPY 118.22 vs 117.57 late Friday; EUR/USD 1.2803 vs 1.2849; GBP/USD 1.9007 vs 1.9108; USD/CHF 1.2452 vs 1.2405. Treasury prices remained under modest pressure, as selling from investors setting up ahead of key inflation reports later in the week dominated flows; Ian Lyngen, interest rate strategist for RBS Greenwich Capital says it's a "modest reversal of the strength we saw last week." 10-year bond yield last 4.62%. (RAP)
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