Europe Summary and Highlights 15 Sep
Some position lightening on USD/JPY extends to next resistance
UK labour market soft, though no additional GBP impact felt
Same global backdrop, with oil, yields and equities feeling pressure
Europe
Dollar remains on a firmer trend, but with current sessions mainly focused on some further moderate position adjustments on the yen after its fast run and into major event risk. USD/JPY extends the bounce to next resistance area around 155. Into the Fed and perhaps most importantly the BoJ, some position lightening from the faster money is logical enough.
Brent +$2.3, S&P future -0.5%, US10s remain pressured, yields up 6bp to 5.02%
UK labour market data comes in soft, with payrolls declining by -26k following the 13k drop in July, and the claimant count rising 27.8k, albeit with ILO unemployment remaining at 4.9% (mkt 5%) in Jul. Earnings also nudged down in line with expectations at 3.9% 3m y/y from 4.1% and 3.5% ex bonus. No real independent GBP impact, though cable remains heavy along with most pairs.
UK Telegraph suggest the BoE will stop selling 20yr and 30yr bonds as part of its annual QT decision this week.
Eurozone ZEW Sep economic conditions mixed, 34.7 from 34.2 versus market 40.0, but with current conditions -47.1 from -61.1 vs mkt -52.1.