- EFSF deny report of bond buying
- EUR rallies early on Italian and Greek leadership changes
- Japanese GDP +1.5% QoQ
- New Zealand retail sales +2.2% QoQ
- APEC communique calls for enhanced trade and green growth
- President Obama calls on China to try harder on currency and economic reform
- China’s inflation could fall below 5% this year; official newspaper
- Asian stocks rally by almost 2% on average
- Copper trades limit up; Gold and Oil add 0.3%
EUR/USD gapped higher in early interbank trade to a high of 1.3814 as the market reacted to the change in Italian leadership. These gains couldn’t be maintained as the fact remains that nothing much has changed except the leader’s name. Sell orders at 1.3820/25 also stalled bullish momentum. The market fell back to close the gap to the NY closing level at 1.3755 but has been unable to break below there. Ranges: 1.3752/1.3814
AUD/USD followed the EUR/USD lead and will end the session back near the lows. There were no major announcements or flows and range trading still dominates. Ranges: 1.0288/1.0350
USD/JPY is supported by strong bids at 77.00, rumoured to be BOJ, but interest was very muted in a 77.08/27 range.
Cable 1.6050/90, USD/CHF .8977/.9013
