The FX Files – Supply Chain(saw) Massacre

FICC Strategy Reports

Overnight: Risk assets are trading defensively. There’s also a bid to core rates in the long-end. In the US, that’s being led by a move lower in real yields. Commodities are under pressure as well (prompt WTI/Brent down by ~1% as I’m typing this), while weakness is also observed in other energy commodities include natural gas. XAU and XBT are also down. In FX – the havens (JPY, CHF) are amongst the outperformers. Slight bid to the tradeweighted USD. Yep…feels “risk-offish” out there.

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