Intraday Market Thoughts

Yen up After BOJ; US Equities Closed

by Patrik Urban
Oct 30, 2012 12:01

US equities to remain closed; BOJ expands asset purchases; German unemployment rose; Eurozone business climate declined; Spanish GDP improved q/q. S&P Case Shiller is next, other US events postponed. USDJPY shorts in latest Premium Insights nearing the final target. EURUSD, EURJPY, cable, gold, silver and EURGBP in progress. More below.

Hurricane Sandy hit the east coast causing a damage that is estimated to exceed USD 50 bln. New York's financial district has been flooded by record tides and rain closing the US markets for the second day in a row. Bloomberg reports that this is the first time in over a century when the weather stopped equity trading for two days.

JPY surged across the board after the BoJ left rates steady between 0% and 0.1% and increased the asset buying programs only by JPY 11T to JPY 91T while some market participants expected a more aggressive increase by JPY 20T. The BOJ said that it would keep easing until 1% CPI is in sight. USDJPY fell from session's high at 80.12 to as low as 79.27. EURJPY declined sharply from 103.39 to 102.17 but recovered to 102.90.

Despite the fact that European data mainly disappointed, EURUSD trades 70+ points above session low of 1.2886. German unemployment rose by 20K in October which was above analysts' expectations but the unemployment rate remained unchanged at 6.9%. Eurozone business climate fell further in October to -1.62 from -1.34 and Spanish Q3 GDP results were mixed as q/q reading improved to -0.3% from -0.4% but on annual basis the economy shrank 1.6% from -1.3%.

UK CBI realized sales surged in October to 30 from previous 6, reaching the highest level since June. GBPUSD trades near session highs around 1.6075.

The US data calendar is limited to S&P Case Shiller index at 9:00 am ET that is seen rising 1.9% in August from previous 1.2%. The consumer confidence report was postponed and the FOMC member William Dudley's speech was cancelled.

CAD traders await RMPI at 8:30 am ET that is expected to slow to 1.2% in September from previous 3.4% and the BOC governor Mark Carney's testimony in Ottawa that begins at 3:30 pm.

USDJPY shorts in latest Premium Insights nearing the final target. EURUSD, EURJPY, cable, gold, silver and EURGBP in progress, while AUDUSD hit all targets and CADJPY stopped out. We added 4 charts on EURUSD and gold to dissect the technical complexities for gold (daily and weekly stochastics and MA confluence) as well as euros intermediate trendline and its shifting behavior relative disappointing IFO & PMIs. For direct access to these Premium trades, please click here: Non subscribers, can click on here to join:



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