Halister News

(Bloomberg) -- Yen slides vs all G-10 peers as Japanese stocks rally after PM Abe secures a victory in the upper house; NOK outperforms after Norwegian CPI comes in higher than forecast; stocks climb in Europe, taking cue from Asian session.

• Crude oil falls, now around $46.30 a barrel

• USD/JPY up 1.5%; approaches 102.35, the 13-DMA as pair snaps five-day streak of lower highs
  • Nikkei reports that Abe will hold a cabinet gathering on economic measures to consider more than 10t yen ($98b) stimulus
  • News spurs unwinding of short USD/JPY positions: Shinkin Asset Management
  • Leveraged funds increased net long yen positions by 1,846 contracts to 49,504 in week ended July 5; marks biggest long position since Dec. 2011: CFTC

• GBP/USD -0.7% to 1.2863, piercing through first support and trading near session low of 1.2860
  • Support is now at 1.2802-1.2797, 1993 trendline and 78.6% Fibonacci retracement of 1985-2007 advance
  • Analysts recommend selling GBP ahead of BOE meeting this week: PREVIEW
  • BOE expected to cut rates by 25 bps this week, according to 30 of 54 economists in Bloomberg survey
  • BNP’s medium-term model forecasts GBP/USD at 1.3500 from 1.5000 before the Brexit vote

• EUR/NOK -0.4% to 9.3865, drops as much as 0.5% after Norwegian CPI comes in higher than economists’ median estimate
  • Norway June underlying y/y CPI 3.0% vs estimate of 2.7%
  • CPI reading “very strong” and outlook for Norges bank cut in September is under question: Nordea

• EUR/USD -0.3% to 1.1022, trading in 1.1016-1.1056 range
  • First support at 1.1002, July 8 low
  • Equity support to Italian banks without triggering the bail-in mechanism should allow EUR to rebound sharply: MS
  • With little evidence that ECB policy accommodation is driving inflationary trends in the euro area, long-end IRS could stay low for long given structural factors increasingly gaining weight: Commerzbank

• BBDXY +0.6% to 1193.17 as USD rises vs all G-10 peers
  • The U.S. had a stronger-than-forecast payrolls report; yet, even bullish analysts are barely clinging to any rate-hike hope for this year: TRADER’S NOTES