Asian equities took cues from Wall Street and continued to rally into EU trading. Actually the risk-on flows are the reason UsdJpy is still holding up despite a more lackluster performance of the USD. BoJ noted some weakening in domestic inflation expectations but nothing really market moving. Comm-dolls experienced something of a position squeeze, but the underlying dynamics have not changed. Illiquid markets make for challenging trading sometimes.
The minutes of the 27-28 October FOMC meeting were more or less as expected and thus the market reaction was limited. Due to the very strong jobs report for October, a December hike is more or less a done deal and thus the FOMC minutes were in fact already old news.
Looking ahead: we have a very busy day today. ECB and Fed speakers on tap, and the markets will listen carefully for any comments on monetary policy. UK retail sales in October are due. The September number was very strong (some say it was due to the hosting of the Rugby World Cup) so we may see a downward correction. Initial jobless claims in the US are estimated to have stayed more or less unchanged around 275K.
No charts for today – nothing inspiring to my eyes today in FX. Better luck can be found in Equities I think.
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