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USD/JPY Retreats From Cycle High as Kanda Warns Speculators

FOREX
  • USD/JPY printed a new cycle high of 140.93 in early European trade, but the pair backtracked following an unscheduled tri-party meeting held between the Japanese FSA, the Ministry of Finance and the Bank of Japan. Following the meeting, Japan's currency diplomat Kanda warned that the Ministry would take appropriate steps on currency markets if required, and outlined their intention to consider various options.
  • Following recent weakness, GBP has turned higher in G10, rising against all others in G10 and putting GBP/USD within range of 1.2400 and the 50-dma at 1.2440. The pair saw support on the back of a slowdown in the BRC shop price index, which provided tentative signs of a peak in food prices - a particularly strong contributor to current UK inflation issues.
  • The USD is fading into the NY crossover, coming off the better levels of the session as markets got a risk-on boost from China trade headlines. The Chinese trade ministry releaased a statement confirming the extension of tariff waivers on some US goods until the end of December, helping provide headline equity indices with some support ahead of the open.
  • US consumer confidence and the Dallas Fed Manufacturing Activity Index makes up the data releases for the day, while ECB's Holzmann, Centeno and Villeroy are set to speak ahead of Fed's Barkin.

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