Forex Market
Americas FX Daily – Intervention pushes USDJPY sharply higher
What happened overnight – Japanese authorities intervene aggressively in USDJPY – Chinese official downplays scope for G20 to discuss funds for Europe – Italian 10-year bond yields back above 6% – Norway announces upsized daily FX purchases
USDJPY intervention. HSBC comment
Japan’s MoF had been warning the market over aggressive JPY moves in recent weeks and decisively pulled the trigger today. The Bank of Japan intervened, near the 75.60 area to an initial high near 79.00 (at the time of writing).
Asia Flash: Blue skies for Asia FX, we are the bulls
In our view, this week will continue to be risk on sentiment in Asia. Tomorrow, China October PMI may print 52 vs. BBG 51.8 and September 51.2. Our leading indicator analysis suggests that China Q4 11 GDP will rise to 9.3-9.5% y/y versus 9.1% in Q3 11.
JPY: Somewhat surprising in terms of timing but decisive intervention
As Japan Finance Minister Azumi confirmed, the Ministry of Finance (MoF) intervened to sell JPY in the Tokyo morning session today, and USD/JPY rose from 75.6 to 79.3 (+4.9%) and EUR/JPY from 107.10 to 111.5 (+4.1%).
Behavioral Finance: Daily Forex Outlook: What are the lessons for the euro?
EUR/USD (1.4165) Many analysts spent yesterday picking apart the latest EU summit deal. They bemoaned the lack of detail; highlighted that the effective size of the Greek haircut was less than the 50 percent headline figure; criticised the likely effectiveness of the Italian debt reduction proposal; and were sceptical about the prospect of a weighty […]
UniCredit EEMEA Daily
News LT: Positive – Sept retail trade growth increases to 20.9% yoy (p2) UA: Mixed – Sept C/A deficit YTD reaches USD 5.5bn, FDI remains high / IMF arrives in Ukraine this week (p2)
FX DAILY STRATEGIST: Asia – 28 October 2011
Scale of Thursday’s EURUSD run up testament to the scale of the short EUR base Throughout the explosive run up in EURUSD from sub-1.38 on Wednesday afternoon in New York to above 1.4200 during Thursday’s New York morning/European afternoon session, it was hard to find anyone with anything constructive to say about the euro here… […]
JPM FX Techs: Sydney/Asia Open
At a glance: The risk-on trade accelerated yesterday with an extension of the bullish risk trade. In line with the global strength in equities and the S&P breaking through important resistance including the 1258/1274 levels, the USD broke down below a number of important support levels.
FX DAILY STRATEGIST: Europe – 27 October 2011
EU Summit meets expectations allowing EURUSD to break 1.4000 With the EU Summit having ticked most of the boxes in terms of expectations, risk appetite has rallied and the USD has weakened across the board with high beta currencies taking the lead.
Behavioral Finance: Daily Forex Outlook: EU secures some ‘breathing space’
EUR/USD (1.3970) Nearly 11 hours of brinkmanship during the Wednesday’s EU summit saw a nervous market react to sketchy details in EU summit headlines and pull the euro down in the European session.
What matters today (Asia edition)
Developed macro 1. Markets appear to have prepared for the under-delivery of the EU summit 2. US: Q3 real GDP likely rose 2.5% supported by robust business investment, an increase in consumer spending and improved net exports. 3. There has been a rising expectation that the Bank of Japan will ease.
Behavioral Finance: Daily Forex Outlook: UK: Low rates and QE for a long time
EUR/USD (1.3920) The euro slid yesterday on the news that today’s planned meeting of the EU finance ministers had been cancelled and that EU leaders played down prospects of a final plan emerging anytime soon.