FOREX: Further Relief for JPY Keeps EUR/JPY Off Highs
May-16 09:29
- AUD trades poorly, slipping slightly against most others in G10 on the back of the jobs data out overnight, showing the unemployment rate unexpectedly ticking higher to 4.1% vs. Exp. 3.9%. AUD/USD faded off a new cycle high of 0.6714 to trade just underwater ahead of the NY crossover. $0.6622 marks the next downside level at yesterday's low, but short-term trend conditions remain pointed higher for now.
- JPY trades firmer, outpacing broader G10 as the gyrations in the front-end of the US yield curve on Wednesday continue to favour a further recovery in JPY. USD/JPY's solid bounce off post-intervention lows had put markets on cautious footing for further measures from the Japanese authorities. For now, however, yield dynamics are relieving some of this pressure, allowing for a broad bounce in the JPY currency.
- Scandi currencies are softer after outperforming on the back of firmer risk sentiment this week. EUR/NOK has recovered off a new multi-week low, but remains below the 50-dma of 11.6551.
- Focus for the remainder of Thursday trade turns to the US weekly jobless claims release, at which markets expect initial claims at +220k, a modest dip from +231k from the prior week. Fedspeak picks up across US hours, with appearances scheduled from Fed's Barr, Barkin, Harker, Mester and Bostic.
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BOE: Lombardelli's initial comments give little away at first glance
Apr-16 09:26
- Lombardelli's appointment hearing has started. So far she has been focusing on how well central banks have forecast the economy and the differences between BOE and OECD forecasting processes.
- She has said that inflation may prove more persistent and that the fall in inflation could be bumpy.
- Most of her comments so far have been rather reserved and not given a huge amount away.
EUR: Some broader buying emerging
Apr-16 09:24
- The EUR is finding a broader bid, with buying emerging, possibly benefitting from the higher Yield, as the German ZEW saw a mixed data, a big beat on expectation, while current situation missed consensus.
- Nonetheless, the EUR test session high against the Dollar, CAD, AUD, CNH, and the Yen, albeit still well within past ranges.
- Most will look at 1.0665, Yesterday's high in EURUSD for initial resistance.
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