USDJPY pulls back from 9-month high
What happened overnight
– EU leaders agreed on common bank supervisory regime
– Euro area finance ministers approved Greek €49.1bn aid disbursement
– SNB keeps policy on hold, is evaluating new currencies and assets
– South Korea left rates on hold at 2.75%, as expected
Risk appetite staged a small pullback following the post-Fed rally, with the USD gaining ground against most currencies. EURUSD rose to 1.31 and pared back most of its gains to 1.3058, JPY weakened as far as 83.67 and stabilized in European hours. The news that EU leaders had reached an agreement on the common banking regulator regime and the approval of Greece’s aid disbursement failed to elicit a positive reaction, as price action appeared to be driven primarily by the aftermath of yesterday’s FOMC decision to increase asset purchases and to switch to an “Evan’s rule” type policy guidance.
Click here to read the full report: FX Daily
Credit Suisse