MNI BRIEF: BOJ's Adachi Sees Conditions For Normalisation

MNI: PBOC Net Injects CNY581.4 Bln via OMO Wednesday

CHINA PBOC CONDUCTS CNY642.4 BLN VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1191 Weds; +2.66% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1191 WEDS VS 7.0830

MNI BRIEF: Fed's Daly Sees 1 or 2 More Rate Cuts This Year

MNI: UK SEP OUTPUT PPI -0.5% M/M, -0.7% Y/Y

MNI: UK SEP CPI +0% M/M, +1.7% Y/Y

Japan Aug Machine Orders -1.9% M/M

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

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

FOREX: JPY Recovering Well as Asia-Pac Stocks Soften into the Local Close

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets
  • JPY strength gathered pace overnight on the mixed performance for Asia-Pac equities, as Hong Kong names are headed for a particularly weak close. Hang Seng is lower by over 4% just ahead of the local close, and a close at current or lower levels would reverse the rally posted since end-September, with concerns over the potential minimal impacts of stimulus, geopolitical risk and soft China data out yesterday and over the weekend continuing to weigh on sentiment.
  • USD/JPY now targets the week's low at 148.98 initially, but support is seen stronger into 147.53, the 23.6% retracement for the recovery off the mid-September low.
  • Oil-tied FX is suffering from the broad pullback in crude oil prices, keeping NOK and CAD offered. Source reports this morning suggested that Israel would not target Iran’s oil and nuclear infrastructure but would focus on military sites in any future strikes.
  • US yields have edged lower off the overnight highs, helping the greenback ease off the recent spell of strength - USD Index has failed to top yesterday's highs at 103.358, which remains the first upside level of note.
180 words

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.
  • JPY strength gathered pace overnight on the mixed performance for Asia-Pac equities, as Hong Kong names are headed for a particularly weak close. Hang Seng is lower by over 4% just ahead of the local close, and a close at current or lower levels would reverse the rally posted since end-September, with concerns over the potential minimal impacts of stimulus, geopolitical risk and soft China data out yesterday and over the weekend continuing to weigh on sentiment.
  • USD/JPY now targets the week's low at 148.98 initially, but support is seen stronger into 147.53, the 23.6% retracement for the recovery off the mid-September low.
  • Oil-tied FX is suffering from the broad pullback in crude oil prices, keeping NOK and CAD offered. Source reports this morning suggested that Israel would not target Iran’s oil and nuclear infrastructure but would focus on military sites in any future strikes.
  • US yields have edged lower off the overnight highs, helping the greenback ease off the recent spell of strength - USD Index has failed to top yesterday's highs at 103.358, which remains the first upside level of note.