- Japanese Q3 GDP +0.9% QoQ
- South Korea confirm that they are working on new capital control measures- USD/Asia spikes higher
- NZ retail sales +0.7% QoQ
- Fed’s Lacker thought risks of QE2 outweighed the benefits
- Germany pushes Ireland to accept bail-out and avoid contagion spreading to Portugal and Spain
- Stock markets -0.5% after early gains
- Oil and Gold give up early gains to finish session flat
Most of the action has been in the emerging markets with the majors staying relatively calm.
EUR/USD closed in NY at 1.3685, fell firstly in early interbank trade as the market anticipated a negative reaction to weekend Irish news but this fall was quickly corrected. The next move was higher, up to 1.3750 on heavy EUR/JPY short-covering. The sharp rally in USD/Asia in the afternoon saw these gains reversed and EUR/USD finishes the session little changed. Ranges: EUR/USD 1.3664/1.3750, EUR/CHF 1.3395/1.3432
USD/JPY has been moderately well bid all session long, firstly bolstered by EUR/JPY buying and then also by USD/Asia demand. Stops lie close by above 82.80 but Japanese corporate selling has been steady near the highs. Ranges: USD/JPY 82.40/76, EUR/JPY 112.84/113.64
AUD/USD has been fairly quiet after the excesses of Friday in a .9824/99 range.
Sterling and Swiss have similarly followed the leads from the EUR in the main. Cable range: 1.6102/53
Markets: Nikkei +0.6%; HK -0.7%; Seoul -0.3%; Shanghai -0.6%. Gold $1368/oz, Crude $86.50/bbl.
