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Holding Tight Range

EURO-YEN

EUR/JPY has fluctuated around neutral levels, awaiting fresh catalysts during a quiet start to the Asia-Pac session. It last trades flat at Y123.81, after peeking under yesterday's low. Bears look for a move through Oct 23 low of Y123.41, which would turn focus to Sep 29 & Oct 2/Oct 15 lows of Y123.03/02. A break here would undermine the recent bullish outlook. Conversely, a rebound above Y124.23, which kept a lid on gains on Oct 23 & yesterday, would allow bulls to target Oct 20/9 highs located at Y125.00/09.

  • Yesterday, RTRS & then BBG reported that German gov't expects the contraction in the country's 2020 GDP to be slightly smaller than previously thought. Officials speaking on the condition of anonymity told the news wires that Berlin will revise its 2020 forecast to -5.5% Y/Y from -5.8%, while leaving the 2021 forecast at +4.4%. The updated outlook is expected to be revealed by German Econ Min Altmaier on Wednesday.
  • Little of note on the EZ calendar today, with just ECB's de Cos set to speak.

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