MORNING BRIEFING: The Japanese yen rose, elections in Japan on Sunday.

[RTFX-Trading]

MORNING BRIEFING: The Japanese yen rose, elections in Japan on Sunday.

What’s new:
United States: Lockhart says it is premature to consider a rate hike.
France: Lagarde sees a deterioration of employment for a few quarters.
United States: 9.60% increase in new homes sales in July.
United States: 4.90% increase in durable goods orders in July.
G20: France and Germany want an agreement on bonuses.
Germany: IFO index to 90.5 in August, the highest since September 2008.

Today:



Rates in Asia and Indices:
EURUSD: 1.4256 - 1.4220.
USDCHF: 1.0701 - 1.0676.
EURUSD: 1.6250 - 1.6210.
EURJPY: 134.44 - 133.26.
USDJPY: 94.29 - 93.58.
DowJones: 9'543 +0.04%.
NASDAQ: +0.01% 2'024.
S & P 500: 1,028 +0.04%.
Nikkei: -1.81% 10'447.
Shanghai: 2'930 -1.25%.
GOLD: $ 944.70.
Oil: $ 71.13.
 
Comments:

German Ifo index rose to 90.5, durable goods orders up 4.90% and new home sales up 9.60% in the United States, that good economic figures yesterday. Normally this would cause an appetite for risk, but yet this is not the case, AUDJPY after hitting 79 yesterday morning fell to 77.50, the NZDJPY fell to 63.55 after hitting 65 yesterday morning, while the GBPJPY is also lower from 154.10 to 151.90. Is this a sign of risk aversion??

The yen has risen sharply in recent days in anticipation of Sunday's parliamentary elections in Japan. In USDJPY, the point that 93.42 who is the lowest of August is a nice support, there is a series of stop-loss sales below. The next very important support is at 92.00.

Nice day.

Nicolas Longchamp
Head of trading desk.
RTFX Ltd
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The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
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