The US dollar strengthened for the second day against the Euro as riskier investments were unwound as reflected by the sell off in Asian stocks. There was talk that Sovereign bids at 1.3560 will hold up the EURUSD but when that didnt eventuate, stops were taken out under 1.3540 trading doen into the 20’s in a matter of seconds. Unfortunately for the break traders there was no follow thru, seeing them scramble for cover back up towards 1.3590 very soon after. EURJPY sold in tandem down thru 129.00 only to bounce a big figure higher as USDJPY held ground at the 100 day moving average(95.10). The afternoon saw USDJPY trade up off the lows and Yen cross shorts covered.

AUDUSD was under pressure all day with intraday traders selling around 7560. However the same bids that held Aussie in at 75c were there again today. Some Yen cross buying late afternoon coupled with AUDUSD short covering saw a small up tick to 7535 and off the lows.

Ranges:

EURUSD 1.3523 – 1.3596

GBPUSD 1.5096 – 1.5159

AUDUSD 7506 – 7557

USDJPY 95.11 -95.74

EURJPY 128.85 -129.97

Goodluck,

Sam