The JPY has seen some further strength in Asian trade, USD/JPY down at 95.50 from a North American close Tuesday around 95.95, while EUR/JPY is down at 135.10 from around 135.80.
The JPY is benefitting from a pick up in risk aversion, with Asian stocks trading lower. There is also some focus on todays FOMC meet where the Fed is widely expected to affirm it’s commitment to an accomodative monetary policy i.e to keep interest rates low.
Some USD/JPY selling related to US treasury coupon repatriation flows.
EUR/USD sits unchanged at 1.4150, slap bang in the middle of a well-defined 1.4100-1.4200 range. Large stops said to be gathered just below 1.4080. On topside stops above 1.4200 and more above 1.4230.
Cable tad firmer with latest jobs data, BOE quarterly inflation report awaited later this morning. Technical support at 1.6430 holding downside, mutterings of Asian sovereign selling interest above 1.6500 limiting topside so far.
Some interesting European data this morning to keep us on our toes.
06:45 GMT: French CPI July expected -0.5% m/m -0.8% y/y, EU harmonised -0.4% m/m, -0.8% y/y
06:45 GMT: French current account July expected 117.72
08:00 GMT: Italian CPI July-Final flat both m/m and y/y EU harmonised -1.2% m/m, -0.1% y/y
08:30 GMT: UK jobless claims July expected 28k, claimant count rate 4.9%, ILO unemployment rate (3m) expected 7.7%, up from 7.6%
09:00 GMT: Euro zone industrial production June expected +0.2% m/m, -16.4% y/y
09:30 GMT: Bank of England quarterly inflation report.
