- Market still digesting the failure of yesterday’s gilt auction
- Pressure on Gordon Brown grows after Mervyn King questioned his economic plans
- NZ dollar big winner on the day as market sees interest rates rising
- Regional Asian currencies also gain
- Romania and Serbia the latest Eastern European countries to get IMF help
Traders remain vigilant ahead of this weekends G20 summit with the ramifications of Chinas call for a new global reserve currency still foremost in their minds. The failure of yesterday’s gilt auction and increasing uncertainty over the success-prospects of worldwide stimulus packages has added to the uncertainty.
Another very quiet trading day in Asia with most of the majors stuck in fairly tight ranges. US investment houses remain prominent buyers of JPY crosses on dips and they were also significant buyers of NZD today, as stop/loss orders in AUD/NZD and NZD/JPY were triggered. Regional currencies like the KRW also continue to strengthen, especially against the JPY.
Markets: Hang Seng +2.5%, Nikkei and Kospi +1%, Shanghai +0.4%. Gold steady at $934/oz and Brent crude also steady at $52.50/bbl.
Ranges: EUR/USD 1.3538/1.3616; USD/JPY 97.44/93; Cable 1.4625/1.4520; USD/CHF 1.1182/1.1245; AUD/USD .6958/.7024 and EUR/JPY 132.34/133.09
