- Fears of another global credit crisis ease as help emerges for Dubai World
- Regional stockmarkets rally by 3% on average
- Gold was unchanged from the NY close at $1077/oz
- Fujii: Japan won’t intervene alone in FX markets
- AUD rallies with other majors, RBA maintains a very bullish view of the Australian economy
- Australian inflation 2.1% pa
- Japan’s manufacturing PMI falls 2 points to 52.3
- Japan’s October wages fall by 1.7%
- Bank of England: too early to exit easy monetary policy
- UK economic data: house prices up but consumer confidence down
Early interbank trade saw some big moves after the Dubai news eased some of the worries regarding another credit crisis. EUR/USD rallied above 1.50 and USD/JPY above 87 in very early trade before the retail markets opened. Most gaps were closed before the Tokyo open and since then has seen a gradual weakening in the USD across the board.
USD/JPY struggled to gain any traction above its previous low of 87.10 and despite three or four attempts, brought on by more verballing from Japanese authorities regarding the JPY level, the pair has slipped back as the day progressed. Range: 86.33/87.16.
JPY crosses have managed some muted gains but overall have been disappointing as many expected large gains after the big bounce on equity markets.
EUR/USD has traded in a 1.4962/1.5082 range and the market seems very unwilling to sit short for an extended period of time.
Cable fell early on the BoE statement and also on the poor consumer confidence number but has been dragged back higher by the EUR/USD.
AUD/USD has seen a .9097/.9197 range as shorts started to cover with both the inflation gauge and the Dubai news increasing the probability of a rate hike later this week.
Markets: Nikkei +2.4%, HK +3.3%, Kospi +2.6%.
