- Microsoft misses revenue target.
- Asian Stockmarkets higher but capped on the back of Microsoft, Dow futures down 35.
- Less than expected demand of high yielders against Yen at the Tokyo fix, USDJPY and Yen crosses drift off.
- South Korean Q2 GDP +2.3%.
- Gold up a touch a 949.00
- Nikkei retreats from morning highs, up 0.9% at the moment.
Well the much talked about demand for Yen crosses at the Tokyo fix did not eventuate, causing a sell off and triggering stops on long positions. EURJPY drifted off from 134.80 down to 134.20 into the fix, then accelerated down thru 134.00 triggering stops once market saw there was no buying to be done. Intraday shorts helped add some support sub 134.00, taking profit, but the EURJPY never recovered, with traders happy to sell rallies back towards 134.20. USDJPY saw the same, with a sell off, back down from its 200 day moving average above 95.00 to test 94.60. It has spent the last three hours trading in a 10 pip range.
EURUSD seemed to be consolidating near the lows after last night’s sell off. It spent most of the day trading between 1.4140-70. There were no major names or flows mentioned today.
The AUDUSD found some support above 81c with regional stockmarkets lending some support. However, unwinding of AUDJPY positions saw the AUDUSD remain offered under 8150 all day.
Ranges:
EURUSD 1.4133 – 1.4167
GBPUSD 1.6470 – 1.6520
USDJPY 94.57 – 95.16
EURJPY 132.82 – 134.81
AUDUSD 8122 – 8149
Goodluck,
Sam
