Euro-Yen Gapped 64 Pips. The Yen Added Seven of Them, in the Other Direction.
Euro-yen opened the week 64.4 pips below Friday's close and the yen contributed none of it.
Decomposed, the euro leg is minus 71.1 yen-pips and the dollar-yen leg plus 6.7, summing to minus 64.3 - the euro leg is 110 per cent of the move and the yen leg minus 10 per cent. Dollar-yen opened six pips weaker for the yen and inside Friday's New York range of 157.69 to 158.34. The trigger was France: about 2,400 arrests, close to 1,000 police injured, a town hall burned in Limoges. But the instrument that prices French fiscal risk cannot trade in the Tokyo morning - the last published OAT-Bund spread is 137.4 basis points at the 16 October close, two readers agreeing. Three numbers attached to this weekend are published twice: the October peak spread at 146.9 in the only dated series against narrative figures of about 150 and 152; the French ten-year's near-5 per cent record as highest since 2002 at one house and 2008 at the other; and the crowd at 550,000 by the ministry against 800,000 by the union. Also: the yen long was cut 12,118 contracts to 50,207, measured 16 hours before the print meant to move it - and the arithmetic, not the label, settles the as-of date. Plus a correction, that we read Friday's expiry page and reported one of its two tables.