Markets took a breather with the rally in risky assets i.e. equity, commodities and European peripheral band spreads narrowed.

Highlights of today’s FX Daily as follow:-

·         Markets took a breather with the rally in risky assets i.e. equity, commodities and European peripheral band spreads narrowed. ·         We expect EUR will continue to take Sterling’s lead and any breakout from the current range will push trade towards 1.1234. ·         On USD/JPY, we envisage the pair to trade in a tighter range around 101-104 provided we witness modest rally in GBP continues. ·         We expect USD/MYR to be range-bound at 4.055-4.140 with volatility continuing but on an easing trend, while GBP/USD is expected to trade above Monday’s 31-year low of 1.3120 and CNY fixing not to be significantly above 6.655 today.