FX Update: The dollar manged to recoup intraday losses
FX Update: The dollar manged to recoup intraday losses as global stock markets managed to stabilize. EUR-USD edged out a new intraday low of 1.1575, correcting after earlier printing a 12-day high at 1.1610. USD-JPY settled in the lower 111.0s after posting a 25-day low at 111.83 during the late New York PM session yesterday. The low was seen following by broad dollar declines in the wake of the softer than expected U.S. CPI data yesterday, which has taken the edge out of Fed tightening expectations (although analysts still anticipate a hike in December, and two further more in the first half of 2019). Subsequent gains in USD-JPY have reflected broader yen weakness, which has seen safe-haven premium unwind as stocks stabilise. S&P 500 futures managed gains of more than 1% after the cash index closed yesterday on Wall Street with a 2.1% decline. EUR-JPY and most other yen crosses have also lifted. In news today, a 5.3 earthquake hit Japan's Kanto region, which reportedly manageable for Japan. No tsunami warning has been issued. A senior official from the IMF, which today started its annual meeting in Bali, said that it was "too early" for Japan to talk about normalizing monetary policy while encouraging Tokyo to make structural reforms to accompany the stimulus. The IMF warned of slower growth in Asia as a consequence of trade protectionism. Cable settled around 1.3220 after posting a three-week high at 1.3251, despite persisting Brexit uncertainties.