FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EUR/JPY Cracks Key Support, Opens Next Leg Lower

FOREX
  • JPY remains a market highlight, as the currency is the strongest performer in G10 for another session - helping tip AUD/JPY over 5% off the cycle high posted pre-intervention. Critically, EUR/JPY has also broken below major psychological support at the Y170.00 mark and looks to secure a close below the 50-dma - hard-worn support that successfully contained weakness on several occasions over the past few months. Clustered support at 167.53-75 could be key on the next downleg.
  • Global growth dynamics remain key, with concerns around the Chinese economy weighing heavily on industrial metals and energy products through the Tuesday session, dragging growth-, risk- and commodity-tied currencies lower in the process. As a result, NOK, AUD and NZD traded poorly into the close.
  • Focus Wednesday turns to pivotal prelim PMI data from the Eurozone, UK and US. The UK numbers could take particular focus given it's the last look at economic data ahead of the August Bank of England decision on Thursday next week - for which markets are priced on a knife edge, split between unchanged, and a first 25bps rate cut of the cycle.
  • Outside of the data, the Bank of Canada decision is also due. Markets are speculating over the potential for a back-to-back rate cut, however some signs of resilience in certain inflation metrics could contain the BoC at this stage.
BulletMarketsForeign Exchange BulletsHomepage
BulletMarketsForeign Exchange BulletsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.