JPY, CHF dented as stronger CNY fix soothes...>

FOREX: JPY, CHF dented as stronger CNY fix soothes

-Risk appetite edged higher Thursday, with a firmer-than-expected CNY fix

courtesy of the PBoC helping soothe nerves. This, allied with comments from

China's central bank governor citing the stability of the currency, helped ease

concerns of further volatility in Asia. Equity futures in the US and Europe sit

higher despite a poor finish for Asia-Pac stock markets. As a result, JPY and

CHF are lower, with some EMFX benefitting (TRY and ZAR in particular). TRY now

sits at the best levels against the USD since May13, with the pair narrowing the

gap with the 50-dma at 5.8590.

-USD/JPY touched the week's best levels at Y109.83, but swathes of option

expiries layered between Y109.50-109.75 could keep the pair anchored from here.

EUR/JPY has also benefited slightly, but remains well within range of the cycle

lows printed yesterday at Y121.58.

-Focus turns to Q1 GDP from the US, with core PCE numbers also expected to draw

attention. Weekly jobless claims and pending home sales for April also cross.

Fed's Clarida and BoC's Wilkins are due to speak.