Sour stocks sends JPY to the top, but CHF.....>

FOREX: Sour stocks sends JPY to the top, but CHF fails to catch a bid

-A terrible day for equities, particularly in Europe, helped keep the recent JPY

rally underpinned, pressuring USD/JPY back toward the 50-dma support at 107.06.

Weakness in European equities filtered through to the US, where the S&P500

traded lower by as much as 2% and pressured short-end US Treasury yields. This,

in turn, sapped any nascent safe haven bid out of the greenback.

-CHF failed to benefit from any safe haven flow, thanks to a particularly dovish

turn from SNB's Maechler, who stated that rates may stay low for longer than

originally thought. EUR/CHF was well bid throughout the Wednesday session and

managed to break briefly above the 50-dma. CAD was also one of the poorest

performers, with soft oil prices the culprit. A fall of over 2% for Brent crude

futures triggered what could be the start of a bullish reversal for USD/CAD.

-Focus Thursday turns to global services PMI data, Eurozone PPI and retail sales

and, in particular, the September ISM non-manufacturing read. The employment

component will likely be carefully eyed after the manufacturing equivalent hit

multi-year lows earlier this week.