- G20 seals 1.1trillion dollar deal
- US congress approves 2010 budget plan
- Asian regional bourses rally after overnight events but give back gains
- Chinese manufacturing data on the improve
- GM willing to consider bankruptcy
Asia opened on a bullish note after the ECB cut by 25 bps and the G20 presented a united front. EUR/JPY sailed past important technical resistance at 134.50 but ran into what smelled like option protection at 135.00. Cable also stalled at an important level, 1.4775, and when regional stock markets started a bout of profit taking after lunch, JPY crosses started to leak.
The big event risk later today is the NFP, with the general consensus being -650k/-675k. Sovereign buyers are anticipated in the EUR/USD on dips back towards 1.3250/1.3300 but the big players do not seem to be chasing the market, as of yet.
Gold is steady just under $910/oz, the Nikkei is up 1.25%, Hang Seng and Kospi are +0.5% and Shanghai is up 0.15% only.
Ranges: EUR/USD 1.3410/95, cable 1.4680/1.4773, Swiss 1.1326/76, JPY 99.41/100.18, AUD .7125/.7230 and EUR/JPY 133.47/134.99