Europe Summary and Highlights 1 Oct
Dollar remains in ascendancy, from EM/carry to majors
EUR/USD extends the low to 1.1280s support; USD/JPY rebounds after period end, into expiries
Europe
Dollar still in the ascendancy across the board. USD/JPY in particular bounces back after the yen buying into the period-end yesterday. Expiries up at 158.25 today also magnetic on the rebound.
Dollar squeeze also being felt out in some EM popular carry types too, USD/MXN up a further 0.8% in a retracement move gathering some steam, USD/ZAR likewise up 0.9%.
Volatility still showing up most in bonds, with the MOVE index up around the March highs, tending to support the dollar action.
EUR/USD also extends the selloff, testing through 1.280 support, with the bigger support further down at 1.12.
French spreads continue to blow out and could increasingly become a specific euro negative factor.
USD/CHF does find resistance at 0.84 offering some capping after an overbought run, early highs of 0.8380s. Swiss CPI as expected at a low flat mth/mth, yr/yr to 1% from 0.8% on base effects.