- Japan June Trade balance +JPY508 Bln.
- Nikkei heads higher in afternoon trading, up 1.2%
- Yen crosses demand dominate Asian trading.
- Gold a touch higher at 951.80
- Blast heard near Security meeting in Thailand
- US Funds and UK clearer seen buying EURJPY aggresively.
There was only one piece of economic data today, the Japan June trade balance(+JPY508 Bln ,better than the expected +620 Bln) which had no effect. Moves today were dominted buy Yen cross buying, in particular EURJPY. There wasnt so much interest leading into the Tokyo fix as there was after. A US Fund, a UK clearer and an Asian semi-governmental entity were all seen buying EURJPY aggresively all the way from 133.60 up thru 134.00, triggering stops above 134.00 in the process. There has been a lot of talk today that there will be a huge demand for high-yielding currencies against the Yen tommorow at the Tokyo fix. It would seem some are preparing for this while others were taking back shorts. News about a blast in Thailand near where the Security meeting was taking place did put a cap on proceedings, but was later confirmed that it was an abandoned motorbike that police had destroyed.
USDJPY had a decent move on the back of all the yen cross buying. Stops were triggered above 94.00, running quickly to 94.30. EURUSD followed suit with buyers at 1.4200 supporting it early morning, only to chase it higher on the back of Fund buying up towards last night’s highs. Some resistance was seen above 1.4240 but retacements have been very shallow.
AUDUSD held strong after the overnight run up, with AUDJPY taking out the 76.60 level to top out just before the all important 77.20 level. That said AUDUSD itself traded in a tight 30 pip bank, moving from 8150 to 8180 in the process.
Ranges:
EURUSD 1.4198 – 1.4243
GBPUSD 1.6432 – 1.6492
USDJPY 93.51 – 94.32
EURJPY 132.81 – 134.30
AUDUSD 8148 8186
Goodluck,
Sam
