MNI China Daily Summary: Friday, December 13

MNI BRIEF: PBOC To Curb Any Yuan Overshot : PBOC Zou

MNI: GERMANY OCT EXPORTS -2.8% M/M (VS FCST -2.6%)

CHINA YTD NEW LOANS CNY17.1 TRLN VS MEDIAN CNY17.5 TRLN: PBOC

MNI: PBOC Net Injects CNY14.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1876 Fri; -1.22% Y/Y

MNI: EUROZONE OCT IP +0% M/M, -1.2% Y/Y

MNI: SPAIN NOV HICP +0% M/M, +2.4% Y/Y

MNI: FRANCE NOV HICP -0.1% M/M, +1.7% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

JPY: USDJPY Stabilises Around 140.00 as Fed & BOJ Decisions Loom

JPY
USGlobalAPACJapanBulletMarketsForeign Exchange BulletsRegionNorth America
  • The continued uncertainty over the Fed’s decision this week and the associated downward pressure on US yields has weighed on the greenback Monday, with the USD index down 0.49% mid-way through the European session. As expected, the Japanese Yen is the main beneficiary here, and USDJPY (-0.55%), and traded below the 140.00 mark for the first time since July 2023.
  • The tilt towards 50bp being a very possible scenario has seen the pair fall as low as 139.58, although we have bounced around 50 pips in recent trade as major equity benchmarks consolidate at their elevated levels, providing some support for cross/JPY.
  • As noted, Fibonacci support at 139.00 is the next target for the moves and below here, the market will look to 138.07, the Jul 28 2023 low. As a reminder, the BOJ will also meet on Friday this week.
  • We highlighted last week there remains a cluster of support between 153.49-154.42 for EURJPY, and a close below the former would significantly strengthen bearish conditions. Pivot support at 151.69 remains a notable target for a deeper correction lower in the cross.
179 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.
  • The continued uncertainty over the Fed’s decision this week and the associated downward pressure on US yields has weighed on the greenback Monday, with the USD index down 0.49% mid-way through the European session. As expected, the Japanese Yen is the main beneficiary here, and USDJPY (-0.55%), and traded below the 140.00 mark for the first time since July 2023.
  • The tilt towards 50bp being a very possible scenario has seen the pair fall as low as 139.58, although we have bounced around 50 pips in recent trade as major equity benchmarks consolidate at their elevated levels, providing some support for cross/JPY.
  • As noted, Fibonacci support at 139.00 is the next target for the moves and below here, the market will look to 138.07, the Jul 28 2023 low. As a reminder, the BOJ will also meet on Friday this week.
  • We highlighted last week there remains a cluster of support between 153.49-154.42 for EURJPY, and a close below the former would significantly strengthen bearish conditions. Pivot support at 151.69 remains a notable target for a deeper correction lower in the cross.