- It has proved to be a disappointingly quiet Friday in Asia as the market waited expectantly for the BOJ decision, which then came in exactly on expectations.
- Fed’s Plosser sees problem with ‘too close’ relationship between US Treasury and the Fed
- Bankruptcy for GM remains likely despite restructuring agreements with UAW and government
- Fed’s Rosengren also downbeat on economy
- Regional bourses generally lower by less than 0.5%
- Gold and crude steady at $950/oz and $60.50/bbl
EUR/USD opened around 1.3900 and gradually drifted higher on some uninspiring comments from Fed members on the US economy, taking out the overnight 1.3925 high, on its way to a high of 1.3955. It has since drifted back towards opening levels. USD/JPY opened at 94.40, fell quickly as stops below 94.00 were triggered but momentum has also waned. Many dealers expected fireworks before and after the BOJ decision but the opposite was the case. AUD/USD has had to chew through some very large offers around .7800 and the market is thought to be sitting quite long at the moment. EUR/JPY opened around 131.00, fell early to its session low at 130.70 before rallying to 131.50 where s/t technical resistance managed to cap. Sterling has lost modest ground on the crosses. Positional figures from the futures markets showing that the market is sitting very long GBP.
Markets: Nikkei -0.3%; HK -0.4%; Shanghai -0.4%.
Orders: Talk of knockouts at 1.40 in EUR/USD and 1.60 in cable.
Ranges: EUR/USD 1.3894/1.3955; cable 1.5834/97; USD/JPY 93.87/94.40; EUR/JPY 130.70/131.55; AUD/USD .7770/.7822.
