USJPY nearing 84 ahead of elections
What happened overnight
– Euro area composite PMI rises to 47.3, driven mainly by the service sector
– China’s flash manufacturing PMI rose to 50.8 in December
– BOJ Tankan surprises weaker than expected in December
Price action was mostly rangebound overnight in FX, in line with equities and most risky assets. EURUSD is slightly higher at 1.3093, having broken north of 1.31 earlier overnight. The stronger than expected tone of the PMI data might have contributed to the move. AUDUSD continued to retrace the move lower from the 1.0586 peak of two days ago, in spite of the stronger performance of the China PMI data. USDJPY rose further to right below 84, supported by the weak Tankan and with the elections this weekend.
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Credit Suisse