As expected there was some heavy stop-loss buying in EUR/USD in the interbank market, which has traded to a high of 1.2671 and has now pulled back to the break-up level at 1.2625. AUD/USD has failed to break up through … Continue reading
Didn’t take long for those month-end flows to materialise with some heavy selling hitting the JPY-crosses right on the Tokyo open; EUR/JPY fell by 25 pips very quickly, from 97.75 to 97.50. The Nikkei is -2%.
I’m being told that there are some Uridashi redemptions today which should lead to selling in AUD/JPY, NZD/JPY etc although the numbers are relatively small (a few hundred million has been mentioned).
Tokyo opens to the same modest risk-off sentiment as yesterday, with the JPY crosses slightly lower in early trade.
Despite the weak opening on regional Bourses, EUR/JPY is managing a modest bounce off earlier 106.15 lows.
USD/JPY is trading toward the lower end of a tight 20 pip range with dealers reporting very little interest either in USD/JPY or any of the JPY crosses thus far.