OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/JPY pushes 117 briefly - BBH

FXStreet (Barcelona) - Marc Chandler, Global Head of Currency Strategy at BBH Global notes USD/JPY breaking the 117.00 level to later return back to 11.6 levels in European Morning.

Key Quotes

“The US dollar is mostly higher to start the week, with two exceptions. The first is the yen. The unexpected contraction in Q3 GDP triggered a stock market slide (Nikkei off 3%, giving back around 40% of this year’s gains) and spurred a dramatic short-covering squeeze in the yen after the greenback first pushed briefly through the JPY117.00 level.”

“The dollar found good bids near JPY115.50 from where it based and returned to the JPY116.30 area in the European morning. The New Zealand dollar is the other exception, helped by a strong retail sales report (1.5% in Q3 vs. consensus of 0.8%).“

“Dovish comments over the weekend by the BOE’s Carney and Haldine, who played up the disinflation risks, took a toll on sterling. It fell a cent from the Asian high near $1.5735 to return toward the 2014 low set before the weekend.”

“For its part, the euro traded as high as $1.2580 in Asia, on follow through buying after the construction pre-weekend price action. However, sellers re-emerged; encouraged by comments from ECB’s Mersch suggesting, at least theoretically, a wide range of assets the ECB could buy, including gold shares and ETFs.”

DAX declines 0.30%

The German equity markets trade lower as sentiment soured after Japan fell into a recession. Markets also eyed comments by European Central Bank President Mario Draghi later in the day.
Read more Previous

EUR/JPY finds support at 144.75

The euro rose at the beginning of the week against the yen and reached a fresh 6-year high, but failed to hold and pulled back, erasing gains.
Read more Next
Start livechat