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5 Jun 2013
Flash: Negative sentiment extended into European session – TD Securities
FXstreet.com (London) - Research teams at TD Securities said that negative risk sentiment overnight extended into the European trading session, with equities declining by 0.1% to 1.2%.
They explained the main mover today has been the yen, which has gained 0.5% to USD, trading at 99.55 at the time of writing, which reflects market disappointment after the long-awaited “Third Arrow” speech by PM Abe. The speech itself, they said, was peppered with broad-brush long-term policy goals (tripling investment in next 10 yrs, raise per capita income by 3% a year) and highly emotive language (such as vowing to “slay the deflation monster”), but was otherwise devoid of details, and set the schedule for legislative reforms later than expected.
On the other side, they noted that the AUD/USD has lost almost 1% on weaker Q1 GDP figures while SEK has lost 0.3% after weaker May PMI data. Beyond that, they explained that most G10 crosses have remained close to unchanged, even GBP which gained only marginally on the better Services PMI, as investors wait for the ADP and ISM non-manufacturing for May and final inputs to refining payrolls expectations for Friday.
They explained the main mover today has been the yen, which has gained 0.5% to USD, trading at 99.55 at the time of writing, which reflects market disappointment after the long-awaited “Third Arrow” speech by PM Abe. The speech itself, they said, was peppered with broad-brush long-term policy goals (tripling investment in next 10 yrs, raise per capita income by 3% a year) and highly emotive language (such as vowing to “slay the deflation monster”), but was otherwise devoid of details, and set the schedule for legislative reforms later than expected.
On the other side, they noted that the AUD/USD has lost almost 1% on weaker Q1 GDP figures while SEK has lost 0.3% after weaker May PMI data. Beyond that, they explained that most G10 crosses have remained close to unchanged, even GBP which gained only marginally on the better Services PMI, as investors wait for the ADP and ISM non-manufacturing for May and final inputs to refining payrolls expectations for Friday.