The smaller players got carved up last night as big players out of China and the Middle East dominated the market. Many are wondering why they bother to play at all and it has been no surprise to see a very quiet Asian session with no news and no flows of any consequence.
- The Federal Reserve statement that the US economy is levelling out has had a positive effect on most markets, with some element of risk coming back into vogue.
- Most of the action happened in NY, here is Jamie’s session wrap
- Latest data on US home foreclosures casts some doubt on the extent of the recovery
- Moody‘s say that NZ banks are still facing a negative outlook
- Australian parliament votes against the carbon emission trading scheme
It has been an extremely quiet session in Asia with all of the majors gaining about 15 pips compared with their NY close. The exception has been cable, which hasn’t managed to move as EUR/GBP posted some very small gains. Middle East buyers remain active in the cross though they have been patient. It now looks like the same player is buying dips in the cable and off-loading these purchases on 100 pip rallies. Easy money if you’re big enough. No sign of China today but then again the ranges weren’t wide enough. They are thought to be sitting on the offer in AUD/USD on the approach to .8400, after buying heavily yesterday at .8200.
Ranges: EUR/USD 1.4203/34; cable 1.6487/1.6510; USD/JPY 95.81/96.23; EUR/JPY 136.25/80; AUD/USD .8330/63.
Markets: Nikkei +0.9%; Kospi +0.7%; HK +1.9%, Shanghai +0.3%. Oil $71/bbl. Gold $950/oz.
