Dec. 15: MARKET OVERVIEW
USD/JPY fell to 117.70 as yen strengthened on Japanese PM’s Abe strong victory on the election. After that the pair bounced back to 119.00, but not for long. Yen trade remains choppy. Meanwhile, the BOJ’s Q4 Tankan report revealed weakness in the manufacturing sector.
AUD/USD dipped to a new 4 1/2-year low of $0.8204. According to the Australian government’s Mid-Year Economic and Fiscal Outlook, the 2014-15 budget deficit is now seen at $40.4 billion versus $29.8 billion expected.
Criminal incident in Australia, Sydney: at least one armed gunman took unknown number of Lindt cafe customers and staff hostage on Monday morning.
EUR/USD is trading under a slight bearish pressure below the 1.2500 mark. Markets await the Fed’s meeting on Wednesday.