Europe Summary and Highlights 9 Sep
USD/JPY stays top heavy though pares the test of lows overnight amid oversold conditions
Brent tests $100 amid ongoing US-Iran exchanges
Buyback op. size one talking point later; otherwise key events Thu-Fri
Europe
Quiet European morning for news and action, some fading of the Asia moves as the market holds into the main events later in the week. Brent tests $100 on the ongoing US-Iran exchanges.
USD/JPY re-tested to near the week lows in Asia before paring on the hold – top-heavy but still consolidating the recent fast run into the 153/2s, amid oversold conditions. Bit of impetus from the headlines late Tuesday from Bessent that ‘he is the house now’, his intervention on the yen coming with 'pretty good insight into what the BoJ and Japan policy makers are going to do'.
USD/JPY action tending to lead still, so leaking into some overnight dollar slippage, again trimming in the European morning.
ECB, and then US inflation data, over Thu-Fri still the next main focal point. Some attention though on the later announcement later today on the buyback size for the first op. since the 'at least double' commitment.
Asia Session
Tits and tats between U.S. and Iran look set to another round of escalation. IRGC claimed that it struck two US Navy destroyers and 18 vessels attempting to cross the Strait of Hormuz but was not confirmed by the U.S.. If the damages are true, one can guarantee another round of escalation. Oil prices are so far capped. USD/JPY continues it long over due correction to trade 0.38% lower at 153.39.
Broader equity indexes are performing individually as geopolitics set to flare up. Korean equities continue to lead with A.I. optimism while other equity indexes are not that upbeat. The AUD/USD is trading 0.17% higher at 0.7228 after RBA Deputy Governor Hauser kept rate hike hopes alive. NZD/USD is trading 0.05% higher while USD/CAD slips 0.07%. Else, EUR/USD and GBP/USD are up 0.08%.