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The JPY underperformed and the AUD outperformed amid a risk-on sentiment in broader asset markets in Asia today in reaction to news that PBoC injected liquidity into the interbank lending market today. USD-JPY rallied about 50 pips to a peak of 104.69 as the yen weakened across-the-board, as is its usual bias during risk-on phases. Read more
The yen posted moderate gains today in pre-European Asian trade. USD-JPY dipped to a six-day low of 103.86 before recovering to the 104.10-15 area. EUR-JPY and other yen crosses saw pretty much the exact same price action. EUR-JPY logged a low of 140.32, which was the lowest traded since Dec-6, before recovering to the 104.90s. Read more
EUR-USD recovered from the an eight-week of 1.3507 seen during the Asia session on Monday, triggering buy stops through 1.3540-50 and making an intraday peak of 1.3566. The speculative market had built up net short exposure (indicated by ONDA analytics at about 60% short versus 40% long), so a rebound in Monday's subdued market seemed natural enough. Read more
EUR-USD recovered after making an eight-week of 1.3507 low in Asia, triggering buy stops through 1.3540-50 and making an intraday peak of 1.3551. The speculative market had built up net short exposure (indicated by ONDA analytics at about 60% short versus 40% long), so a rebound in today's subdued market seems natural enough. Read more
In monthly news for December, industrial production and capacity utilization rose. Housing permits and starts fell, and had their lowest YoY increase in over 2 years. Consumer sentiment also fell. Retail sales rose, but after adjusting for inflation, real sales actually declined slightly. Read more
Last week, the biggest news was the continued lack of global inflationary pressures. The US’ core PPI was 1.4% Y/Y while the core CPI printed at 1.7% for the same period. Germany’s WPI was .4% M/M, Italy’s was .2% M/M and .7% Y/Y while Spain’s was .3% Y/Y. Read more
The last report for housing permits and starts for the year 2013 is in, and it shows that the deceleration in growth since mortgage interest rates started to increase has continued. Housing permits came in at 986,000 only 43,000 or +4.6% higher YoY. Read more
Yesterday, the Australian Bureau of Statistics reported that employment decreased by 22,600 between November and December of last year. The consensus figure for this number was a gain of 15,400, making the released number a big shock to the market. This comes amid the Australian economy trying to rebalance from one that derives a large amount of its growth from commodities exports to one more oriented to personal consumption and other internal growth sources. Read more
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The USD posted new highs against he JPY, GBP and AUD, the latter of which was hit by an unexpected dive in Australian employment data, though consolidated at slightly lower levels versus the EUR. Both USD-JPY and EUR-JPY lifted to new highs for the week of 104.92 and 142.91 respectively, before consolidating modestly lower during the European AM session. Read more
The yen extended lower, mostly driven via EUR-JPY which sprang to a new high for the week at 142.91, while USD-JPY did likewise in lifting to 104.92. A return to risk-on sentiment has seen the yen weaken over the last couple of sessions, though Japanese stock markets underperformed with moderate losses today. Read more
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