Free Trial
BOJ

Fixed Rate Operation Offer

US TSY FUTURES

Blocks In TY

AUSTRALIA DATA

Strong Import Growth Reflect Robust Domestic Demand

KRW

Won Outperforming Broader Dollar Pullback

AUSSIE BONDS

Meandering Through Early Trade

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

European FX Space Back On Its Feet

FOREX

G10 FX space saw some unwinding of yesterday's price action, with the European FX bloc finding poise. Headline flow was sparse and did not provide anything to diffuse concerns related to Italy's political turmoil and Europe's energy crisis.

  • Shipment orders data published by Nord Stream AG showed that gas flows through the pipeline will resume at ~40% of capacity, slightly more than expected, with the planned maintenance due to finish at 06:00 CET. Still, actual volumes remain clouded by uncertainty until realised, while the risk of further weaponisation of gas shipments by Russia remains.
  • Yen volatility briefly spiked (USD/JPY seesawed within a 50-pip range) as the BoJ kept its monetary policy settings and forward guidance unchanged, but tweaked economic forecasts to reflect stronger headwinds to growth and upside risks to inflation. The Bank flagged concern with sharp fluctuations in FX and commodity markets. As the dust settles, JPY is roughly where it was before the announcement.
  • Traditional safe havens were out of favour despite questionable performance from regional stock markets. The greenback and yen were broadly softer, while the CHF lagged its European peers.
  • The kiwi dollar landed at the bottom of the G10 pile, despite the lack of any obvious domestic catalysts. Correction of yesterday's outperformance may have played a role here.
  • Central bank activity will remain in high gear, with the ECB preparing to announce its monetary policy decisions & BoE Chief Economist Pill due to speak. In the EM space, rate reviews are due in Indonesia, Turkey and South Africa.
  • On the data front, focus turns to U.S. initial jobless claims & Philadelphia Fed Business Outlook.
263 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

G10 FX space saw some unwinding of yesterday's price action, with the European FX bloc finding poise. Headline flow was sparse and did not provide anything to diffuse concerns related to Italy's political turmoil and Europe's energy crisis.

  • Shipment orders data published by Nord Stream AG showed that gas flows through the pipeline will resume at ~40% of capacity, slightly more than expected, with the planned maintenance due to finish at 06:00 CET. Still, actual volumes remain clouded by uncertainty until realised, while the risk of further weaponisation of gas shipments by Russia remains.
  • Yen volatility briefly spiked (USD/JPY seesawed within a 50-pip range) as the BoJ kept its monetary policy settings and forward guidance unchanged, but tweaked economic forecasts to reflect stronger headwinds to growth and upside risks to inflation. The Bank flagged concern with sharp fluctuations in FX and commodity markets. As the dust settles, JPY is roughly where it was before the announcement.
  • Traditional safe havens were out of favour despite questionable performance from regional stock markets. The greenback and yen were broadly softer, while the CHF lagged its European peers.
  • The kiwi dollar landed at the bottom of the G10 pile, despite the lack of any obvious domestic catalysts. Correction of yesterday's outperformance may have played a role here.
  • Central bank activity will remain in high gear, with the ECB preparing to announce its monetary policy decisions & BoE Chief Economist Pill due to speak. In the EM space, rate reviews are due in Indonesia, Turkey and South Africa.
  • On the data front, focus turns to U.S. initial jobless claims & Philadelphia Fed Business Outlook.