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OFZs Firm W/W, 10Y Stalls Out Above 6.80

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A gap lower for Stoxx600 on the cash open

FOREX
FOREX: Yen rises to the top of the pile as market contemplates wider
ramifications of yesterday's 'stealth taper'
-USD/JPY retreated further from the 2018 highs overnight as traders continue to
add to their belief that the trim of the BoJ's YCC operation yesterday may
signal a willingness to let Japanese yields rise further. USD/JPY has now taken
out the 100DMA and is closing in fast on the 200DMA at Y111.72.
-As a result, the greenback trades generally weaker against G10, correcting some
of yesterday's strength. The fall is far from dramatic, with the DXY still up
0.65% on 2018's lows.
-Relatively strong manufacturing and industrial production figures have done
little to stir confidence in the pound, with cable tumbling below $1.35 and
testing $1.3495 support shortly after the figures as analysts speculate that the
BoE's hawkish turn will be countered by ebbing inflation and more negative
Brexit headlines.
-US Import/Export Price Index figures left on the slate at 1330GMT, followed by
US Wholesale Inventories at 1500GMT.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com