- Same procedure as yesterday with fairly heavy selling of the JPY crosses in the morning session being undone as the afternoon progresses.
- Australian inflation remains very subdued
- NIESR sees growth, albeit weak, returning to UK economy
- BOJs Yamaguchi- no set view on when funding support should end
- Chinese Asst Fin Min says US must do what it can to protect Chinese investments
- USD/JPY selling expected today related to Mitsubishi Group USD equity issuance
A very quiet session again in Asia but some decent flows have ensured some movement at least. Early Tokyo saw decent sized sales of EUR/JPY and GBP/JPY which drove them from their NY closing levels of 133.20 and 154.20 to lows of 132.50 and 153.15 respectively. Cable also got close to technical support at 1.6385 but there were enough shorts happy to cover on dips to ensure that the support levels held. Short positions in the JPY crosses have continued to cover as we near the European open.
Orders: Solid interest at 1.4150 and 1.4250 in the EUR/USD might ensure a few sessions of range trading according to some dealers. Some short-covering bids at 1.6385 in the cable with stops below 1.6365 and more bids at 1.6330/40. Solid selling interest in the AUD/USD either side of .8200. USD/JPY selling interest throughout the day related to MTG issuance of USD equity which needs to be finalised today.
Markets: Nikkei +0.6%; Kospi-flat; Sydney +0.25%; HK +0.3%; Shanghai +0.3%; Oil steady at $66.60/bbl; Gold steady at $950/oz.
Ranges: EUR/USD 1.4174/1.4221; Cable 1.6392/1.6455; AUD/USD .8142/74; USD/JPY 93.41/73.
