EUR crosses hold onto overnight gains
What happened overnight
* Japan reports a worse than expected trade deficit in July
* South Africa CPI data fails to show impact of higher food prices
* We recommend short-dated USDJPY RKI risk reversals
Markets retraced part of yesterday’s risk on move overnight, pushing the USD higher across the board, in very tight ranges. The move was concentrated in EM and growth-sensitive G10 currencies, while the euro and EUR crosses held on to most of yesterday’s gains. EURUSD is roughly unchanged at 1.2470, AUDUSD moved back below the 1.05 watermark and is trading at 1.0446, USDJPY remains unchanged at 79.26 despite the weaker than expected trade balance data.
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