Presently down at 1.3860.
General risk aversion has picked up in wake of China’s move to raise reserve requirements at 6 large banks. Also increasing worries regarding impact strong yen will have on Japanese economy. Asian stocks have had a rocky session with Nikkei getting hit hard.
Elsewhere, comments by Fed vice-chair Yellen have been noted. Given those who thought additional Fed QE done deal some food for thought. The official yesterday warned that low interest rates may increase risk , saying they may encourage firms to “reach for yield” and could present officials “with difficult trade-offs” if “emerging threats to financial stability became evident.”
For today not much on euro zone data front:
06:00 GMT: German CPI for September (final) expected -0.1% m/m, +1.3% y/y; wholesale price index expected +0.4% m/m, +6.3% y/y
06:45 GMT: French current account for August
Talk now buy orders clustered down at 1.3835/45 with stops gathering through 1.3830 and again through 1.3800.
