The pair started at Y107.00 in Asia Wednesday, early demand lifted the rate to Y107.12 before recovery lower to touch an Asia base at Y106.83 during late morning session. September trade deficit widened to Y958.3 bln from a previous of Y949.7 bln, but a jump in exports by 6.9% y/y from previous contraction of 1.3% offset the softer trade data. The data pushed the spot to Y107.07 from Y106.98 but met strong above Y107.00/10. Dollar-yen traded with heavy bias as reported supply above Y107.00 linked to options and medium offers at Y107.15/20, pressured the rate lower despite rally in Nikkei. Euro-yen opened at Y136.06, recovering from a NY session of Y135.70 to Y136.48. The cross pullback sharply lower yesterday, in response to the Reuters news that ECB looking into buying corporate bonds but a FT article contradicted the news and saw a recovery to Y136.08. This morning euro-yen extended recovery to high of Y136.20 in early trade, but heavy dollar-yen pressured the cross to session low of Y135.94. Euro-yen grinded higher to stand unchanged at Y136.06 and dollar-yen at Y106.93, ahead of European open. Relatively lighter volume session as Singapore and Malaysia markets closed today, ahead of BOE minutes and US CPI.
