2 Sep 2013
Flash: USD/JPY higher on quelled Syrian fears – BMO Capital Markets
FXstreet.com (Lisbon) - Broadly speaking, this morning was primarily about near-term Syria relief. As such, the strength in the USD/CHF and the USD/JPY reflected spillover of one of the apparent themes at the end of last week, notes Greg Anderson at BMO Capital Markets.
Key quotes
A near-term reduction in Syria tensions as we now await the US Congressional vote appeared to help lift European equities this morning and simultaneously knock the CHF and JPY lower.
The underlying bid in the CHF from the lows may be a point of concern, however. Otherwise, the move lower in EUR/GBP – also continuing a trend we witnessed last week – is an important point of interest.
“We intend to finalize and release a few thoughts on the EUR tomorrow when North America returns. For the time being, we suspect that the trend lower in the pair reflects something deeper and perhaps more profound than simple data divergence.”
Key quotes
A near-term reduction in Syria tensions as we now await the US Congressional vote appeared to help lift European equities this morning and simultaneously knock the CHF and JPY lower.
The underlying bid in the CHF from the lows may be a point of concern, however. Otherwise, the move lower in EUR/GBP – also continuing a trend we witnessed last week – is an important point of interest.
“We intend to finalize and release a few thoughts on the EUR tomorrow when North America returns. For the time being, we suspect that the trend lower in the pair reflects something deeper and perhaps more profound than simple data divergence.”