- South Korean GDP grew at 2.9% QoQ, fastest rate in 7 years
- ECB’s Noyer in Singapore; important to continue momentum reform
- China’s refined-copper imports rise
- Bloomberg survey of economists suggests US economy recovering at increasing rate
- Australia Q3 PPI +0.1%
- Regional bourses recover from early losses to close in positive territory
- Gold steady at $1056/oz, oil loses slightly slipping back below $80/bbl
Relatively quiet day in Asia has seen the JPY strengthen modestly against most of the majors with the GBP again being the biggest loser on the session.
GBP/JPY has fallen from around 150.50 to just above 149.00 on the session despite the afternoon recovery on the Nikkei. The UK GDP data is still undermining the pound whilst very strong GDP data out of Sth Korea is increasing confidence in the Asian economies. There is some talk of bids around 1.6240 in the cable and of CTA offers around 1.6380/00.
EUR/USD tried to fall early in the session but persistent buying around 1.4980 from Sovereign names amongst others has seen the pair back into the mid 1.5000’s as the afternoon progressed. EUR/GBP buying continues to emerge with CTA-type accounts now joining in.
USD/JPY fell from an opening level around 92.10 to trigger tight trailing stops below 91.70. EUR/JPY opened the session at 138.30 which is very close to technical resistance in the form of a trendline drawn through the 2 prior highs at 139.20 and 138.70.
AUD/USD fell after the PPI number but the talk of Sovereign buying interest from the BIS and an Asian regional central bank were enough to see the shorts squeezed as the day progressed. NZ were on holiday today as were HK.
Ranges: EUR/USD 1.4982/1.5061; Cable 1.6253/1.6336; USD/JPY 91.57/92.19; AUD/USD .9193/.9276; EUR/JPY 137.70/138.30.
Markets: Nikkei +0.75%; Kospi +1%; Shanghai +0.1%.
