An almost audible sigh of relief from the Eurozone as Japan distracted markets by unilaterally intervening for a four-figure surge in USDJPY. This was a better result than the last three rounds of intervention over the past 14 months, helped by IMM speculative yen longs at 22-month highs and what seems to have been unusually large official bid of potentially $60 bn. But there’s no rest for the wicked: Italian 10y yields are back above 6%, and this week brings the RBA, FOMC and major US data.
UBS Investment Bank