- Talk of a possible rift before next weekends’ G20 meeting
- Analysts warn of consequences if disunity is the outcome
- GM chief Wagoner to resign
- US Autos task force rejects funding plans
- Japanese auto production fell by 56% and exports by 64%
- Japanese industrial output -9.4% vs -9.2%
- S. Korea Feb current a/c surplus +4.24 bln dollars
The EUR/USD closed in NY on Friday at 1.3300 but fell 100 pips immediately on open as risk aversion plays returned and stop-losses below 1.3250 were targeted as were barriers at 1.3200. EUR/CHF stops below 1.5175 were also triggered as there was no sign of expected SNB activity. Strong EUR/GBP bids at .9280 helped to stabilise the market and add some much needed liquidity. News during the day that GM chief Wagoner has been forced to resign and that the US autos task force has rejected the funding plans of the big 3 US auto makers, sent equity futures tumbling and saw heavy selling of EUR/JPY to 128.25 and also AUD/JPY.
The Nikkei, Hang Seng and Kospi all fell 3% with Shanghai and Sydney falling 1%. Gold also fell heavily, losing $17/oz to $926 and Brent crude was down $1/bbl.
Ranges: EUR/USD 1.3195/1.3285, USD/JPY 96.78/98.30, EUR/JPY 127.80/129.70, EUR/CHF 1.5130/1.5210, AUD/USD .6808/.6920 and cable 1.4190/1.4300.
