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FOREX: G10 FX trends Mostly Steady, Yen A Touch Softer, Focus On Risk Appetite

FOREX
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Early G10 FX trends are relatively muted. The BBDXY USD index is little changed, last holding above 1226. Focus remains on Middle East tensions, as markets await Israel's response to Iran missile launches overnight.

  • Headlines have crossed of strikes into Lebanon, which has likely weighed on risk appetite at the margins, but follow through has been limited. Oil prices sit off session highs, while US equity futures are down, but also away from session lows (last off around 0.10%).
  • US yields are close to unchanged in early dealings, after losses in Tuesday US trade amid a flight to safety
  • USD/JPY has drifted a little higher in latest dealings, last near 143.75/80, close to 0.15% weaker in yen terms, but still within recent ranges. We had Japan money supply figures earlier, but the data calendar is very light otherwise.
  • For USD/JPY there is also an option expiry at 144.00 later for USD/JPY, which may influence spot trends
  • Trends are very steady elsewhere in the G10 FX space. AUD/USD is unchanged, last near 0.6880/85. NZD/USD is up a touch to 0.6285/90, after underperforming in Tuesday trade.
  • Local banks are raising their calls for a 50bps cut at next week's policy meeting for the RBNZ, but this is now close to fully priced by the market. 
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Early G10 FX trends are relatively muted. The BBDXY USD index is little changed, last holding above 1226. Focus remains on Middle East tensions, as markets await Israel's response to Iran missile launches overnight.

  • Headlines have crossed of strikes into Lebanon, which has likely weighed on risk appetite at the margins, but follow through has been limited. Oil prices sit off session highs, while US equity futures are down, but also away from session lows (last off around 0.10%).
  • US yields are close to unchanged in early dealings, after losses in Tuesday US trade amid a flight to safety
  • USD/JPY has drifted a little higher in latest dealings, last near 143.75/80, close to 0.15% weaker in yen terms, but still within recent ranges. We had Japan money supply figures earlier, but the data calendar is very light otherwise.
  • For USD/JPY there is also an option expiry at 144.00 later for USD/JPY, which may influence spot trends
  • Trends are very steady elsewhere in the G10 FX space. AUD/USD is unchanged, last near 0.6880/85. NZD/USD is up a touch to 0.6285/90, after underperforming in Tuesday trade.
  • Local banks are raising their calls for a 50bps cut at next week's policy meeting for the RBNZ, but this is now close to fully priced by the market.