Headlines:
- USD/JPY sticks with the push and pull mood on the week
- US futures pare losses ahead of the open later
- Gold Technical Analysis - New highs as rate cuts repricing pauses
- Fed's Barkin says does not want to prejudge December meeting
- Fed's Williams: The disinflationary process will continue
- ECB's Stournaras vouches for a 25 bps rate cut in December
- ECB's Patsalides: If Dec projections confirm baseline scenario, there is room to cut rates
- ECB's Villeroy: The balance of risks on growth, inflation is shifting to the downside
- BOJ governor Ueda: We don't make comments on short-term FX moves
- France November business confidence 96 vs 97 prior
- UK November CBI trends total orders -19 vs -27 prior
- Japan's largest insurer to raise expected interest rates for the first time in 40 years
- Zelensky says Russia used new missile in attack on Ukraine today
Markets:
- JPY leads, EUR lags on the day
- European equities mixed; S&P 500 futures up 0.2%
- US 10-year yields down 1.4 bps to 4.392%
- Gold up 0.6% to $2,665.93
- WTI crude up 2.2% to $70.30
- Bitcoin up 3.4% to $97,712
It was a bit of a mixed session with broader markets not really acting in unison in European morning trade.
The dollar is sitting a little more mixed, though the Japanese yen is the notable mover on the day thus far. USD/JPY fell from around 155.15 in the handover from Asia to a low of 154.10, with little major catalysts. Russia-Ukraine tensions continue to offer something to chew on but I would argue that's more reflected in oil prices.
Besides the yen, other major currencies aren't showing much cohesion. EUR/USD is down 0.2% to 1.0525 while AUD/USD is up 0.3% to 0.6523 currently. The pound, franc, and loonie all remain little changed against the dollar with not much to really stir the pot.
In the equities space, European indices remain a little sluggish at the balance. Meanwhile, US futures were down earlier with tech shares feeling heavy after Nvidia's earnings overnight. But as the session progressed, dip buyers stepped in and we're now seeing US futures sit marginally higher ahead of the open later.
As for the bond market, yields are sitting lower but nothing outstanding so it's also tough to tie in the outsized move in USD/JPY on the day to this.
All in all, it makes for quite a mix of flows in broader markets during the session.
Elsewhere, gold is marked higher as the rebound continues while Bitcoin continues to flirt with fresh all-time highs in a brief push above $98,000 for the first time.
