USDJPY holds below 80
What happened overnight
– Spanish GDP contracts 0.4%qoq in Q3
– Singapore inflation surprised to the upside
– We expect an unchanged BoC, with a slightly less hawkish statement
FX markets were trading softer in Asia and Europe, reversing some of yesterday’s gains in USDJPY and EURUSD. USDJPY made a small move higher to 80.01 before retracing back to 79.90, partially mirroring the move lower in US yields. EURUSD is down to 1.3023, tracking the slight weakness in peripheral government bonds in the light of the -0.4%qoq print on Spain’s Q3 GDP. This did not prevent the Spanish Treasury from successfully selling €3.53bn of 3-month and 6-month bills to strong demand. HUF, PLN and ZAR are the worst performing currencies of the day, ranking below the growthsensitive G10 currencies such as CAD and AUD.
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Credit Suisse