News Headline Summary
Combination of position squaring ahead of the FOMC minutes release, as well as consequent rate differential flows which saw USD/JPY come under pressure, continues to support demand for core EU fixed income paper, with peripheral spreads wider as a result
- Concerns over the looming decision by Japanese government over planned sales tax rise also added to the cautious sentiment which prevailed overnight in Asia, where the Nikkei 225 index closed lower by over 2%.
- Of note, Japan LDP tax panel's Noda said the sales tax rise is inevitable. Of note this morning, Japan PM adviser Honda said that an extra spending needed if sales tax raised in April as sales tax hike could otherwise deal major blow to recovery.
- Higher spending in turn may pose another problem for both the BoJ and Abe, who not so long ago reiterated its pledge to adhere to halve its primary deficit by FY 2015.
- With JPY firmer across the board and USD also down as a result meant that risk averse flows supported CHF, with EUR/CHF tripping stops through 1.2300 to the downside earlier on in the session.
- Weaker USD ensured that in spite of the cautious sentiment, EUR/USD and GBP/USD traded higher as a result.
08:19, 20 Aug 2013 -
16:21, 16 Aug 2013
T-notes move to session lows, on a sale of 10k Sep 10yr from 125.03 to 125.01, triggering sell stops at the overnight lows...
09:58, 16 Aug 2013
EU MID-SESSION UPDATE – 16/08/13: Equities traded steady this morning, given the light economic calendar and absence of any major earnings releases…
17:20, 15 Aug 2013
USD-index tumbles in recent trade falling 0.45% lower, lifting other major FX pairs although no fundamental news being attributed to the moves and price action exasperated by thin volumes
08:33, 15 Aug 2013
GBP/USD moves to a two month high to trade at GBP/USD 1.5586 (+73 pips) last...
16:33, 13 Aug 2013
USD holds onto earlier gains, with the USD-index having traded relatively sideways since breaking through the 200 DMA to the upside at 81.592 earlier in the session...
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