USD/JPY - ..... Dlr is nursing loss after yesterday's brief but sharp fall to a 5-week trough of 105.20 as release of a surprise sharp drop in U.S. retail sales (September monthly sales fell 0.3% vs forecast of -0.1%, previous reading was +0.6%) proved to be the 'catalyst' for a broad-based sell off in global stocks with the Dow having fallen 458 points after the data.
The broad-based weakness in global equities also triggered sharp fall in the Nikkei futures (N225 futures closed down 535 points) led to active buying of yen on risk aversion.
Although recovery in U.S. stocks plus rebound in the benchmark 10-year U.S. treasury yields (10Y had one of the biggest intra-day moves in over a decade fell from 2.20% to 1.85%, lowest since mid-2013) lifted dlr to 106.40 on short-covering, price moved narrowly for rest of NY afternoon session.
The lack of a movement in Tokyo trading is a surprise, no bargain hunters, no short-term specs selling dlr on stop-hunting etc suggests buyers & sellers are evenly balanced.
Although Nikkei is currently trading at a 4-1/2 month low of 14763 (down 310 points), yen is weak on the crosses, suggesting range trading would continue in Asia as traders are on the sideline.
Offers are noted at 106.30/40 and more above with stops above 106.70. Initial bids are reported at 105.80-60 area with stops touted below 105.20.
Thursday will see the release of New Zealand's manufacturing PMI, consumer inflation expectation, eurozone trade balance and CPI, U.S. initial jobless claims, industrial and manufacturing output, NAHB housing market index, Philly Fed business index, Net L-T flows and overall capital flows.
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Mon 27 May 2019 AAGB/US- Holiday Tue 28 May 2019 A 14:00 US- Consumer Confidence C 13:00 US- Case-Shiller Wed 29 May 2019 A 08:55 DE- Employment AA 18:00 US- BOC Decision A 18:30 US- EIA Crude Thu 30 Mar 2019 AAEZ/CH- Holiday A 12:30 US- Weekly Jobless Fri 31 Mar 2019 AA 10:00 EZ- Flash HICP A 12:30 US- Personal Income, Spending, Deflator AA 14:00 US- Final Univ of Michigan
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