EUR/USD, USD/JPY, EUR/GBP flows: Cross consolidates break lower; dollar waits for payrolls
Waiting game ahead of payrolls holiday, some wariness over MoF
Dollar also checked since Warsh's comments
EUR/GBP the main interest in recent hours with the range breakdown
Another somewhat bumpy overnight session as Kospi drops over 8% on chip; corrections, though Nasdaq future a more measured -0.2%. Oil down another $1 to new lows as Doha talks complete. Not much spill over, with the FX market in waiting mode into payrolls.
Some focus on Japan MoF after Reuters sources suggest they are switching to silent guerrilla tactics rather than telegraphing action. Pair off a modest -0.2% so far, even with the temptation to trim positions into payrolls and potential intervention risks into the US holiday.
EUR/USD also still within touching distance of 1.14, dollar upside generally a little contained since Warsh suggested inflation risks had come down.
Sterling has been the main point of interest in fact over the last couple of sessions in fact, EUR/GBP breaking down sharply through the 0.86~ prior base floor to open up more downside on stops. 0.8547, (GBP/EUR 1.1700) is the next level down on that cross, some slowing ahead of that, with 0.85 on any further follow through. Action reflects positioning (excessive GBP spec bearishness amid waning political focus) and technicals more than anything too concrete.