OIL: US Records Rises In Crude & Product Stocks

• Bank of Korea to Sell KRW1 tn 91-Day Bonds
• South Korea to Sell KRW2 tn 2-Year Bonds
• Thailand to Sell THB20 bn of 182-Days Bills
• Philippines To Sell PHP 7.5Bln 182D Bills (PH0000060386)
• Philippines To Sell PHP 7.0Bln 91D Bills (PH0000059909)
• Philippines To Sell PHP 7.5Bln 364D Bills (PH0000061343)

source:  Bloomberg Finance LP / MNI 

The Friday night range was 153.89 - 154.41, Asia is currently trading around 154.10. The pair remains well supported thanks to a combination of a hawkish FED and a BOJ that is still unsure about when it will raise rates. We are approaching some resistance back toward the 154/155 area and I would expect we might to do some work around here initially. I also suspect any sustained break back above 155 could see the move begin to accelerate and with that the potential for further intervention, though personally I think they will wait for levels closer to 160 to get involved. Looks for dips to continue to be supported while above 149-150.

• MNI Policy: BOJ To Focus On Evolving Prices And Spending. The BOJ cautioned, that “prices have continued to rise, mainly led by food prices, which are daily necessities, and this has had a clear impact on households’ consumption activity.” The warning could undermine the BOJ’s baseline view that consumption will return to a moderate increasing trend as food price gains slow.
• Options : Close significant option expiries for NY cut, based on DTCC data: 151.50($385m), 152.50($401m). Upcoming Close Strikes : 155.00($1.63b Nov 6), 155.35($1.17b Nov 6) - BBG.

Fig 1 : USD/JPY Spot Weekly Chart

Source: MNI - Market News/Bloomberg Finance L.P