FX Update: The euro, and EUR-JPY in particular, has remain buoyant
FX Update: The euro, and EUR-JPY in particular, has remain buoyant. EUR-USD edged out a four-day high of 1.1933, while EUR-JPY rallied to a four-month high, at 134.29. The recent run of strong data out of the Eurozone, juxtaposed to uncertainties about the U.S. tax reform bill and Fed tightening projection in 2018, have been keeping EUR-USD underpinned. The rebound in global tech stocks, meanwhile, has ben conducive for yen weakness, along with a solid close by the major U.S. indexes on Wall Street yesterday and gains on most Asian bourses today (offsetting concerns about the underperforming Chinese stock market). USD-JPY edged out an 11-day high of 112.69 in the early Asia-Pacific session, subsequently remaining buoyant. This makes it the fourth consecutive day the pair has risen. GBP-JPY a two-month high of 152.52, and AUD-JPY a 10-day peak. A flood of data releases were seen today out of Japan were mostly encouraging, but the most salient of which from a monetary policymaker perspective was that inflation remains benign, with the October CPI headline coming in a just 0.2% y/y and the core CPI version at 0.8% y/y, well off the 2.0% BoJ target.