Forex - EUR/SEK, EUR/NOK Flows: SEK hit hard by soft CPI

 08:48 (GMT) 14 Nov

  [Forex Flows]

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EUR/SEK, EUR/NOK Flows: SEK hit hard by soft CPI (0100-VGFD-C01)

Swedish inflation data is well below expectation and the Riksbank will doubtless be pleased to see EUR/SEK jump straight onto a 9.86 handle in reaction, a level not seen since this time last year. It's another blow for SEK longs who have long been making the argument that fundamentals suggest it is undervalued, while we also note EUR/NOK is not far behind despite a slightly better than expected Norwegian GDP release this morning. We suspect the latter is likely to come back down more quickly.

Forex - USD/JPY Flows: still a limited downside

 07:49 (GMT) 10 Nov

 [Forex Flows]

Only modest losses for the N225 earlier as it recovered from the lows, but still down 3% from the intraday high seen yesterday. Weight ordinarily have expect that to push USD/JPY into at least a run some way down the 112 handle, but the buyers were again there to pick up any pieces before they had fallen too far, while I should also be pointed out that the currency pair did not follow the equities too closely when they were making the highs. It still appears that the USD longs are not going to be easily shifted, and there is little on today's calendar likely to change that.

Forex - USD/JPY, EUR/JPY Flows: Nikkei volatilty drags USD/JPY along

 07:05 (GMT) 09 Nov

 [Forex Flows]

JPY surged, driven by Nikkei as it took a sharp dive after being up around 2% intraday. The widely-watched index plunged from 23382 to 22522, suspected to be technically-driven as the stock index hit 50% Fib retracement from the 1990 highs of 39260. USD/JPY tanked from 114 level to 113.45 before seeing some support to stop the damage.

Forex - NZD/USD, AUD/NZD Flows: RBNZ leaves rates unchanged, but NZD gains on forecast updates

 20:14 (GMT) 08 Nov

 [Forex Flows] [Central Banks]

The RBNZ left rates unchanged as expected but the NZD has firmed, the market noting that tightening is now seem in Q2 2019 rather than Q3 2019, a marginal change and still quite distant. Inflation is seen reaching 2% in Q2 2018 rather than Q1 2019, a more significant shift. Policy is seen accommodative for a considerable period but with considerable uncertainties meaning adjustment may be needed. The impact of the new government's policies is seen as very uncertain.

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