FX News Today
FX Action: USDJPY has ebbed to a two-day low of 111.80 so far, driven by Yen outperformance amid a backdrop of souring risk appetite, as the Dollar itself has firmed against most other currencies despite losing ground to the Yen. EURJPY is down by 0.4% and AUDJPY by slightly more. Markets seem to be taking a more circumspect view of the “biggest ever” trade deal between the US and Canada for a number of reasons, such as the length of time it will take to be approved (full implementation may not be until 2020) and the fact that, on aggregate, the new USMCA deal may not make much more difference to the three economies than the NAFTA deal it replaces.
Asian Market Wrap: 10-year Treasury yields are down -0.7 bp at 3.076%, and 10-year JGB yields dipped -0.6 bp to 0.118%, while Australia’s bond market underperformed and the 10-year yield rose 2.0 bp, as RBA left official rates unchanged. Stock markets traded mixed, after the initial euphoria over the USMCA deal started to fade and the mood on Wall Street was muted in the end. Topix and Nikkei are up 0.48% and 0.17%, and the Hang Seng is down -1.96% while China’s markets remained shut today. US futures are also heading south and investor sentiment doesn’t seem to have been lastingly lifted by the latest trade deals, while, in Europe, Brexit concerns and Italy jitters hang over the markets. Oil prices are up on the day and the front end Nymex future is trading at USD 75.60 per barrel.
Charts of the Day
Main Macro Events Today
- GBP PMI Construction – Expectations – September’s Construction PMI is expected to decline and stand at 52.5, compared with 52.9 last month, albeit still remaining higher than the 50 threshold.
Support and Resistance Levels
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Dr Nektarios Michail
Market Analyst
HotForex
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