- Japanese FinMin Noda: Recent currency moves clearly one-sided
- Japan PM Kan: Sudden currency moves are not welcome
- Tokyo Stock Exchange CEO: Japan should show its ready to intervene on yen
- UK confidence takes an austerity knock – The Telegraph
- MPC member Dr Weale: “Foolish” to rule out possibility of double-dip downturn. Fears BOE’s UK growth forecasts too optimistic
- UK July s.a mortgage approvals 33,698, down from 34,575
- Euro zone June industrial orders +2.5% m/m, +22.6% y/y vs median forecasts +1.5%, +22.9% respectively
- German GDP (Q2 final) +2.2% Q/Q, +4.1% y/y. No change from previous estimate and in line with forecasts
- Australia cross-bench MPs say expect talks with major parties to run into late next week
Japanese officials continue to talk, market continues to load up with yen. Risk aversion is to the fore and US yields low and these continue to pressure the pairing. There are other reasons, including speculation China is going to be ongoing buyer of JGBs.
USD/JPY down at 84.35 from early 84.95, while EUR/JPY is at 106.35 from around 107.30. Noda gave a press conference and offered absolutely nothing new. This gave yen bulls the greenlight to take more onboard.
We got to session low 84.17 where buying from two Asian sovereigns (Korea and Taiwan) lent some support. Barrier option interest now seen at 84.00 in USD/JPY and 106.00 in EUR/JPY.
EUR/USD down at 1.2605 from early 1.2635. BIS has been seen buying around 1.2610/15 lending much-needed support. Also some option-related buying ahead of 1.2600 barrier option interest.
Attepted rallies have been snuffed out quickly against the risk off backdrop. Stops seen through 1.2600 on downside. Talk of buy orders, including corporate interest, clustered down at 1.2580.
Cable down at 1.5395 from early 1.5425, having been as low as 1.5374. Russia notable seller early. Sterling hasn’t been helped by comments made by new MPC member Dr Weale. (see above)
AUD/USD down at .8840 from early .8870. Australian (local) buy orders down at .8820/25 have lent much needed support.