- Ongoing Bank of Japan intervention seen in USD/JPY during European morning
- Japan will intervene in forex during New York hours if needed – Kyodo citing MOF official
- BOE’s Miles: Inflation uncomfortably above target at present
- BOE’s King: UK “credible” deficit plan is necessary
- BOE’s King: Monetary policy, automatic stabilisers can react if economic recovery slower than expected
- UK August jobless claims +2,300, weaker than median forecast -3,000. First rise since January
- Greek FinMin: Markets know Greece on track, want to see if it can stay course
- Greek debt management agency: Tuesday’s t-bill auction drew 30% foreign participation
- Swiss ZEW investor sentiment -5.1 in September, down sharply from 9.1 in August
- China should “appropriately” increase bank deposit rates to counter mild inflation – CBank advisor Li
- Chinese think tank warns US it will emerge loser in trade war – AEP in The Telegraph
Main event by far this morning has been ongoing intervention by the Bank of Japan in USD/JPY. That said we haven’t progressed too far, USD/JPY up at 85.25 from early 84.95. We did get as high as 85.52 at one stage before running into very decent sell interest from Japanese banks. Most probably Japanese exporter orders.
Highest I heard BOJ buying was 85.40/45 area.
We were already slipping slightly when China entered the market selling aggressively and we got back down to around 85.00 before renewed BOJ buying sent us back up again.
EUR/USD sits at 1.2975, effectively unchanged on the day. Big German noticeable seller into early rally, but BIS has been seen buying on a couple of ocassions helping limit losses. But it’s been a side-show with focus on USD/JPY.
Talk of buy orders, including sovereign interest, clustered down at 1.2935/40.
Cable sits at 1.5535, firmer from early 1.5485. Sterling has managed to survive a slightly disappointing jobs report and an appearance by BOE Governor Mervyn King at the TUC conference in Manchester.
Talk of sell orders clustered up around 1.5600.