Early morning recap

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Just to benefit those Asian traders starting their day, improved prospects of a Greek debt restructure deal being reached later today and the Chinese RRR cut over the weekend, ensured that the EUR, AUD and NZD have seen plenty of short-covering both in early interbank markets and also since the rest of the market joined in. Asian stockmarkets are expected to open higher, and this will likely increase momentum even further. EUR/USD and AUD/USD are both almost 100 pips higher than their NY closing levels from Friday.


All|Asia Pacific


Sean Lee


  1. Morning Sean,

    How do you see Cable playing out over the week, with Sterling currently moving along with risk flows in Euro, do you feel there’s a chance it will be a turn back to 1.55 regardless of Greece.

  2. Hi Samuel, I’m probably not the most objective person to ask as I’m small long cable and I’m also long GBP against the AUD and EUR. Looks to be a good chance that it will trade sideways between the 100-day MA at 15690 and the 200-day at 15915 before making a decisive break one way or thother?

  3. Can’t we consider a Chinese RRR cut as a sign of a worse-than-already-priced-in situation in China? And also i think we are where we left off in Friday concerning Greece.

  4. this was a typical Monday morning stop run in asia. The weak stops above 1.3200 were done on the opening and no follow thur. Sell euro with a stop above 1.3250 looking for a revisit of last week lows. There is no good news here China reducing rates because exports are falling off. The PIIGS away from Greece need a weaker currency to promote exports the trouble is the ECB doesn’t want to allow the currency weaker while there is a crisis in confidence but a big move lower will come

  5. Sean, Finally, I ran out of patience and came out even during the Friday night rally on GBP/AUD, minus the negative carry. Had to refocus elsewhere and this was distraction…

  6. Very understandable Siva, a distraction is certainly a good description :) I’ve thrown it in the bottom drawer and will try and forget about it until it either starts moving or starts costing too much :)


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