NOTABLE MACRO HEADLINES

• The IMF says China will drive global growth in post-pandemic years, but warns of severe downside risk to India's growth outlook
• The PBOC is thinking of establishing a CNY futures market to improve onshore pricing
• Looking back to the US, markets are awaiting the release of the Fed minutes on Wednesday afternoon for signs of future rate hikes

DAILY PERFORMANCE OF MAJOR CURRENCIES

• Euro up 0.5% at 1.1875, with the 5-year German - US interest rates spread 6.7 bp tighter (see charts below)
• Yen up 0.4% at 109.74; 5Y Japan - US rates spread 4.4 bp tighter
• Offshore Yuan up 0.2% at 6.5409; 5Y Chinese - US rates spread 7.2 bp wider
• Swiss franc up 0.6% at 0.9308
• Sterling down 0.5% at 1.3823
• Canadian dollar down 0.3% at 1.2563
• Australian dollar up 0.2% at 0.7662
• NZ dollar up 0.0% at 0.7057

RATES SPREADS AND IMPLIED VOLATILITES

CLOSER LOOK AT TOP MAJORS

The EUR, JPY and CNY have been largely following spreads in interest rates, with the Japanese currency looking to have overshot by a good margin recently.

US DOLLAR INDEX

NOTABLE  EXOTIC MOVERS TODAY

• Mongolia Tugrik up 1.0% (YTD: 1.3%)
• Georgian Lari up 0.9% (YTD: -3.7%)
• Kenyan Shilling up 0.5% (YTD: 1.1%)
• Botswana Pula up 0.4% (YTD: -0.9%)
• Moldovan Leu down 0.5% (YTD: -5.3%)
• Malawi Kwacha down 0.8% (YTD: -2.3%)
• Indian Rupee down 0.9% (YTD: -1.5%)
• Mauritius Rupee down 1.2% (YTD: -2.8%)
• Fiji Dollar down 1.6% (YTD: -1.0%)