Europe Summary and Highlights 21 Sep
Japan on holiday, European morning quiet
USD/JPY sticks to the 157s after last week's swings, rate checking talk, and circumspect through Japan holiday
Oil eases further, eying UN for diplomatic efforts ; boosts sentiment with equities up 1%, and yields trimming
Europe
Japan on holiday, and a relatively quiet European morning to follow.
USD/JPY up modesty in the 157s, after easing off the 158~ bounce highs on Friday’s wide bar amid suggested MoF rate-checking post BoJ disappointment. Markets treading carefully generally, given historical MoF action on holiday - though at present actual action would not seem like a logical move.
IMM data provided some framing to last week’s action too, with data showing the market had jumped yen long (largest since Jun25) prior to the Fed and BoJ outcomes, helping set up the following mini squeeze/correction.
Main interest is oil and geopolitics. Brent is off around -$2.2, with UN meetings this week seen offering a possible diplomatic window, and following Axios reports last week suggesting the US will present a plan. Other negative background noise set aside for now ahead of this.
Markets firmer (Nasdaq and Dax up over 1%, US10yr -4.5bp) against these hopes and easing oil backdrop.