- Political woes in Japan as the ruling party does poorly in w/e elections.
- NZ retail figures for May encouraging, +0.8% mth/mth.
- Asian Stockmarkets lower as nervous investors sell, Nikkei -1.5% at the moment.
- EUR/JPY sold off in tandem with Nikkei.
- DPJ’s Nakagawa says Japan should diversify reserves.
- Lloyds braises for 13 Bio GBP write-down, GBP sold off.
- China copper imports up, but talk it could be last of it.
- Gold unchanged at 912.15
Well we started the day with a positive tone, with enough interest to take the majors higher into mid-morning. Good interest to buy EURJPY into the Tokyo fix was senn as it traded up towards 130.00 and USDJPY towards 93.00. However, post fix, GBPJPY selling started the ball rolling, as all Yen crosses were sold off back to the morning lows. GBP was the main loser today as stops under 1.6180 then 1.6150 were triggered on the back of the GBP cross sell off. EURGBP continued to find buyers(Middle Eastern names still the ones mentioned), with technical traders watching the 8670 level for a topside break. The article out in the UK Times about Lloyds ready to write-down 13 Bio GBP did GBPUSD no favors either spooking the market.
The Nikkei had a big influence on the Yen crosses sell off today. EURJPY has holding up fine as the Nikkei saw early gains on the back of M&A talks by Kirin and Suntory, but nervous investors sold off holdings which in effect saw EURJPY sold off heavily back below the NY close. EUR followed but with less of an impact. Talk of Sovereign names still looking to buy towards 1.3900 softened the blow.
Not much seen in the AUDUSD today. AUDJPY sellers lead the AUD lower with offers emerging at 7820 to see it back under 7780 late afternoon. Major mids at 7750 reported in Asia today but were not tested ..YET.
Ranges:
EURUSD 1.3922 -1.3978
GBPUSD 1.6119 – 1.6224
USDJPY 92.33 – 92.94
EURJPY 128.65 -129.88
AUDUSD 7760 – 7824
Goodluck,
Sam
