- Risk was back in play after big rallies in the JPY crosses in US markets. EUR/JPY broke above technical resistance at 135.50 in early trade, triggering stop-loss buying. Solid USD/JPY offers at 96.30 and USD/JPY selling at the Tokyo fix managed to stall any further gains.
- Cable rose to 1.6661, exactly the high from June 3rd. Stops expected above 1.6675.
- UK consumer confidence continues to rise
- OECD tells UK government to curb spending
- Australian private credit and new home sales fall
- Tensions between Australia and China in commodity markets
- CNY takes another step towards internationalisation
- Japan’s jobless rate at 5-year high
- Oil prices push higher, now at 8 month highs
Regional equity markets rose by well over 1%. Nikkei +1.8%, Sydney +1.6%, HK +0.8%, Kospi +0.7%, Shanghai +0.1%. Oil is up $1.75 at $72.75/bbl and gold is up slightly at $942/oz.
Ranges: EUR/USD 1.4072/1.4131; USD/JPY 95.80/96.30; cable 1.6548/1.6661; AUD/USD .8072/.8123; EUR/JPY 135.18/95.
