Europe Summary and Highlights 27 Oct
Dollar still rebalancing firmer, most pairs correcting
EUR/USD testing through support, USD/JPY lifts into supply area, strikes
French spread bounces from pullback to 150~
Dollar continues the week on a firmer footing, most pairs extending their corrections, with EUR/USD testing through 1.1150 to open back up the recent lows if the intraday break holds. USD/JPY also continues the bounce into previous supply, with the lift to 157.75 also encouraged by expiries, with large strikes in the 157.85-158 area later. Still rebalancing into this week’s central bank and event risk.
French spreads tested down to the lower 150bp~ support but bounced quite strongly from there. Monday’s high is in the way of a possible attempt to fill the post review gap.
French Oct consumer confidence 80 from 85 (mkt 85), 2013 lows.
EZ M3 unchanged at 3.5% (mkt 3.4%), loans to households also flat at 3.1%.