Halister News

(Bloomberg) -- Dollar broadly strengthens, led by market participants unwinding USD/JPY short positions amid thin trading conditions.

• Fed’s Yellen says there could be benefits to Fed buying equities or corporate bonds
• Some Deutsche Bank clients reduce their exposure to bank
• BBDXY rises for second day, up 0.12% at 1,184.92
  • U.S. Aug. personal income and spending data due later today
  • 10-year Treasury yield falls 1 bp to 1.548%
  • Oil and copper decline; gold rises
• USD/JPY gains for fourth day, up 0.42% at 101.45
  • This looks to be unwinding of USD/JPY shorts as FX pair’s floor is solid near 100 area, with quite “a lot of buying interest” toward that level, says Tsutomu Soma, general manager of fixed-income at SBI Securities
  • Spiked briefly to intraday high at 101.78 amid quarter- end book squaring and option-related hedging, says trader
  • BOJ summary of opinions from Sept. meeting says they don’t intend to peg 10-year JGB yields at 0% for long
• AUD/USD falls for second day, down 0.09% at 0.7629
  • Sell stops being left under Monday’s 0.7603 low, with momentum and leveraged selling seen already this morning, say traders
  • FX pair traded a bearish outside day yesterday
• NOTE: Mark Cranfield is an FX strategist who writes for First Word. The observations he makes are his own and are not intended as investment advice.