- BCC warns that green shoots might be fragile
- Australian business confidence surges
- EUR/USD dominated by big option plays
- Rumours that Asian central bank on bid in USD/JPY
- Australian merchandise imports fall
- Japanese newspaper reports North Korea set to launch long range missile
- RBA sells 1.4billion AUD in May
Another very quiet session opened with the EUR/USD at 1.3940, cable at 1.6390 and USD/JPY at 95.70. Talk of large buying interest in USD/JPY around 95.25/50 spread through the market quickly and this encouraged buying in the JPY crosses. This momentum unfortunately died out very quickly and it has been a slow drift back towards opening levels for all pairings. Sterling continues to lose momentum on the crosses and some negative projections from the BCC and further uneasy relations between the BOE and the Chancellor may undermine the pound in early European trade. EUR/USD is dominated by some big option plays with 1.3750/1.4100 expected to tie the pairing down for the near future.
Regional stock markets followed the NY lead and fell by up to 2%.
Ranges: EUR/USD 1.3932/74, cable 1.6365/1.6430, USD/JPY 95.62/96.02, EUR/JPY 135.30/134.15, AUD/USD .7923/78.
Markets: Nikkei -1.8%, HK -2%, Shanghai -0.4%, Kospi -0.3%. Oil $70.50/bbl, Gold $940/oz.
