Europe Summary and Highlights 17 Sep
Consolidation out of the FOMC move, some risk bounce
USD/JPY sees capping, eying BoJ, expiry, supply
UK BoE MPC the next focus
Europe
Largely consolidation of the initial post FOMC reaction in the European morning. USD/JPY has seen capping, pulling the pair back into the mid 155s ahead of the key BoJ on Friday
A very large $4.7bn at 155 tomorrow also tending to add weight along with the supply into the bounce.
Oil has continued to trim back though, off around $1 with Brent front month at $104, Saudi re-routing and better inventories data taking the edge off in the last couple of days now.
Equities seeing a bounce, S&P up around 0.8%, Nasdaq +1%, taking back yesterday’s losses. US10s hold just off 5%, holding the slight flattening out of the FOMC. Somewhat firmer risk reflected in the morning's FX outperformers.
UK BoE the next big focal point. The MPC is expected to leave policy unchanged, but some interest in the vote and the tone of the statement. The Bank is also expected to announce slowing in QT, ending the purchase of 20-30yr gilts, as part of its annual review. Sterling also consolidating into that, cable bouncing modestly off the post Fed support test.