- G7 did not have much to say on the currency front.
- An additional stimulus package is expected in Japan.
- Japans’ economy contracted by well over 3% in the last quarter, which is an annualised rate of almost 13%.
JPY crosses were hit hard on the Asian opening after what some obviously thought was a disappointing G7 outcome (although it was widely expected). More negative British press, particularly for the Bank of Scotland, saw sterling hit hard in thin and illiquid Asian markets.
EUR/USD has seen a 1.2755-1.2808 range after closing in NY at 1.2860. Cable closed in NY at 1.4385 and has seen an Asian range of 1.4202-1.4266. USD/JPY has traded 91.43-95, EUR/JPY 116.78-117.72 after closing in NY at 118.40 and finally the AUD/USD has traded fairly quietly .6503-38. Option barriers in the EUR/USD at 1.2700 are thought to have rolled off and some light corporate buying is noted in the AUD/USD at .6480-90 and again at .6430-40.
