Yen hit as election rhetoric ramps up
What happened overnight
– Japan opposition leader calls for unlimited BoJ easing
– Euro area and CE3 report weak GDP data for Q3
– UK October retail sales weaker than expected
– China confirms new leadership lineup
European currencies are broadly firmer and the JPY has weakened, with USDJPY rallying above 81 and EURUSD testing 1.2780 again. Comments from the Japanese opposition leader calling for aggressive easing were the main driver, while the EUR, PLN and HUF have gained ground despite weak GDP data. Equity markets were mostly in negative territory, but Tokyo closed nearly 2% higher on the Abe comments, while the S&P future is up about 0.3% after Wednesday’s 1.4% loss. Sovereign bond yields are stable, with the Spanish 10-year yield down about 1bp to 5.89%, though still up about 7bp on the week.
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Credit Suisse