EUR/USD, USD/JPY, USD/CHF flows - Yen dips after period end, pulls to expiries
USD/JPY bounces after period end weight, and key expiries again proving magnetic (158-158.25 today)
USD/CHF still trending to 0.84 resistance, CPI tame
ISM the main interest later today ahead of payrolls
Dollar still holding out on top, even as some shift their Fed calls forward to December, though most pairs still essentially basing out above Tuesday’s lows in consolidation of the recent fast runs. USD/CHF though does continue its trend-up action, extending on to 0.8380, running towards stronger resistance at 0.84 where overbought conditions could factor. CPI data came in as expected at a still standout tame flat mth/mth, with the yr./yr to 1% on base effects from 0.8%, still allowing the SNB to remain ultra-easy on its policy stance.
USD/JPY does see more of a pop, recovering from yesterday’s period end JPY buying. Today’s larger option expiries are also stacked up at 158 and 158.25 vs 157 yesterday and that is also tending to shape recent settlement, market current sat right in the zone again.
Main interest today comes from the US ISM data later, seeing how it compares to the influential PMI last week (we see it firm but not as ultra strong), and then the run in to the key payrolls data.