MNI BRIEF: Canada NDP Will Bring Nonconfidence Motion In Jan.

CANADA NDP SAYS WILL INTRODUCE NONCONFIDENCE MOTION

STATSCAN SAYS NOV FLASH RETAIL SALES `RELATIVELY UNCHANGED'

MNI China Daily Summary: Friday, December 20

MNI: PBOC Net Drains CNY103.5 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1901 Fri; -2.13% Y/Y

EZ/UK Bond Supply Calendar: BOE APF Sales Due 6 January

MNI: BELGIUM DEC BNB BUSINESS CONFIDENCE -13.8

MNI: US NOV PERSONAL INCOME +0.3%; NOM PCE +0.4%

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

FOREX: Safe Havens Outperforming, Rhetoric On FX Returns From Japan Officials

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets

Safe havens have outperformed in the first part of G10 Friday trade. Most focus has rested on USD/JPY, with fresh highs reached before verbal rhetoric returned from Japan officials. The USD BBDXY index was last near 1305, slightly up for the session.

  • USD/JPY got to highs of 157.93 in early trade, levels last seen in July of this year. We had FinMin Kato come across the wires stating he was deeply concerned about FX moves. Later on Chief FX Diplomat Mimura also expressed deep concern around FX moves. Both officials stated action would be taken if FX moves were excessive.
  • USD/JPY has dipped a few times sub 157.00 (lows of 156.84) but support has been evident. We were last 157.20/25, around 0.15% stronger in yen terms. Earlier data showed y/y momentum for national CPI picked up in Nov, although some of the m/m detail was softer. The BoJ is waiting for the new year before deciding the timing on the next hike, with a strong focus on wage outcomes.
  • USD/CHF is down a touch last near 0.8980. US equity futures are off, led by the tech side, (Nasdaq futures down 0.70%). Prospects of a government shut down (as the latest funding bill failed to pass the House) is a headwind for risk appetite.
  • US yields are mostly lower, but losses are not much beyond 1bps at this stage.
  • AUD/USD is down, last near 0.6225, off 0.20%, but above yesterday's lows under 0.6200. Softer commodity prices are also weighing on A$ appetite. NZD/USD is back towards 0.5620, slightly outperforming the AUD so far today. Earlier NZ sentiment and trade data didn't impact.
  • Looking ahead, we have US PCE data for Nov, along with the final U. of Mich survey for Dec. Fed speak returns as well, with Daly and Williams due. Before that, UK retail sales prints. 
303 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.

Safe havens have outperformed in the first part of G10 Friday trade. Most focus has rested on USD/JPY, with fresh highs reached before verbal rhetoric returned from Japan officials. The USD BBDXY index was last near 1305, slightly up for the session.

  • USD/JPY got to highs of 157.93 in early trade, levels last seen in July of this year. We had FinMin Kato come across the wires stating he was deeply concerned about FX moves. Later on Chief FX Diplomat Mimura also expressed deep concern around FX moves. Both officials stated action would be taken if FX moves were excessive.
  • USD/JPY has dipped a few times sub 157.00 (lows of 156.84) but support has been evident. We were last 157.20/25, around 0.15% stronger in yen terms. Earlier data showed y/y momentum for national CPI picked up in Nov, although some of the m/m detail was softer. The BoJ is waiting for the new year before deciding the timing on the next hike, with a strong focus on wage outcomes.
  • USD/CHF is down a touch last near 0.8980. US equity futures are off, led by the tech side, (Nasdaq futures down 0.70%). Prospects of a government shut down (as the latest funding bill failed to pass the House) is a headwind for risk appetite.
  • US yields are mostly lower, but losses are not much beyond 1bps at this stage.
  • AUD/USD is down, last near 0.6225, off 0.20%, but above yesterday's lows under 0.6200. Softer commodity prices are also weighing on A$ appetite. NZD/USD is back towards 0.5620, slightly outperforming the AUD so far today. Earlier NZ sentiment and trade data didn't impact.
  • Looking ahead, we have US PCE data for Nov, along with the final U. of Mich survey for Dec. Fed speak returns as well, with Daly and Williams due. Before that, UK retail sales prints.