FX Action: The yen is at intraday lows
FX Action: The yen is at intraday lows, with USD-JPY trading above 112.40, and EUR-JPY and other yen also rising. Notable gainers include AUD-JPY, which is a forex market proxy on global risk appetite, and GBP-JPY, both of which are showing gains of around 0.5%. This is despite an indifferent tone in stock markets, and better than expected Japanese retail sales and household spending data, though the latest forecast from the OECD put Japan's growth at 1.0% in 2017, well off its forecast for U.S. growth of 2.3% and 1.6% for the Eurozone. The divergence in the growth outlook chimes with contrasting Fed versus BoJ policy biases, the former heading for a rate hike next month, and further tightenings next year amid an expected $1 tln fiscal stimulus from Trump, and the latter looking headed for a return to the monetary stimulus spigots by around April next year. The 2016 high at 121.68, seen back in late January, provides a framework for bulls. Support is at 111.30-36.