Europe Summary and Highlights 22 Oct
JPY and CHF finding traditional risk-negative bids, as dollar positioning and tech exposure drag there
New France wides and further ripple out to likes of Belgium
Oil continues higher, concerns over US plans post midterm
JPY and CHF in the box seat for risk-aversion demand amid the heavy tech performance (generally off 2-3% today) and euro France-centric woes, USD/JPY back through 157 and USD/CHF 0.82~
Price action on likes of MXN also in tune with ongoing carry unwind theme.
France accelerates to new wides above 170bp, while Belgium also pulled above 100bp as some spillover widening.
EUR/USD still propped by positioning, dollar tone, and to an extent higher option expiries, though crosses remain lower.
Oil around the recent highs, Brent front month up $3+ to $112, supported by the generally negative news flow, including reports that US ‘quietly scaling back troop and diplomat presence across Middle East’.