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USD/JPY: Yen carry risks build into Q4 – Rabobank
Rabobank’s Global Daily notes that FX markets were surprised by Dollar strength in Q3, with EUR/USD and GBP/USD relatively subdued while USD/JPY saw “huge action” higher. The report warns this move may spill over into the Yen Carry Trade if it continues. Emerging Market FX is also slipping against the Dollar again, except for CNY, which is treated as a separate case.
Breaking: US core PCE inflation stays unchanged at 3% in August vs. 3.3% expected
Annual inflation in the United States (US), as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, held steady at 3.4% in August, the US Bureau of Economic Analysis (BEA) reported on Wednesday.
TRY: Inflation and easing threaten Lira – Commerzbank
Commerzbank’s Tatha Ghose notes USD/TRY has broken above 49.0, continuing a pattern of defended levels being breached in step-jumps. He downplays the broader systemic impact of a Turkish stock market scandal and instead highlights surging fuel-driven inflation and the prospect of CBT rate cuts. Ghose warns that an easing cycle in an inflation-vulnerable economy is the key risk for the Lira.
Euro remains depressed near yearly lows amid soft German data
The Euro (EUR) has trimmed some losses against the US Dollar (USD) on Wednesday but remains on the defensive, as data from the Eurozone fails to inspire, while France's ballooning debt starts to raise eyebrows.
New Zealand Dollar gains as US Dollar declines on easing Fed rate hike bets
NZD/USD gains ground after registering losses in the previous day, trading around 0.5650 during the European hours on Wednesday. The pair gains upward momentum as the US Dollar (USD) weakens following dovish remarks from Federal Reserve Bank of New York President John Williams.
Japanese Yen trims part of intraday gains vs retreating USD as traders await US PCE data
The USD/JPY pair recovers a few pips from a one-and-a-half-week low, touched earlier this Wednesday, and trades just below the 157.00 mark during the first half of the European session, still down around 0.25% for the day.
Euro: EUR/USD risk reversal long setup – TD Securities
TD Securities' Macro Research Insight recommends going long EUR/USD via a three-month zero-cost risk reversal, buying a 1.1610-strike call and selling a 1.11-strike put.
Germany Hesse CPI (YoY) climbed from previous 3% to 3.4% in September
Germany Hesse CPI (YoY) climbed from previous 3% to 3.4% in September
Germany Hesse CPI (YoY) remains unchanged at 3% in September
Germany Hesse CPI (YoY) remains unchanged at 3% in September
Germany Hesse CPI (MoM) up to 0.5% in September from previous 0.3%
Germany Hesse CPI (MoM) up to 0.5% in September from previous 0.3%
Germany Baden-Wuerttemberg CPI (MoM): 0.6% (September) vs 0.1%
Germany Baden-Wuerttemberg CPI (MoM): 0.6% (September) vs 0.1%
Germany Brandenburg CPI (MoM) climbed from previous 0.3% to 0.5% in September
Germany Brandenburg CPI (MoM) climbed from previous 0.3% to 0.5% in September
Spain Current Account Balance: €5.91B (July) vs €2.41B
Spain Current Account Balance: €5.91B (July) vs €2.41B