- IMF warns Aussie banks about defaults -Brisbane Times
- Japan Govt monthly report: Economy has been picking up but remains in difficult situation
- BOJ’s Shirakawa: Japan’s economy has started to pick up. East Asia economy recovering faster than expected
- Japan Strategy Minister Kan: Govt, BOJ basically agree on economic view. (Response to Govt’s outlook seemingly being more dour than central bank’s). Big forex moves could affect economy
- John Lewis week to Oct 10 department sales up 13.3%
- S.Korea FX authorities spotted buying dlrs to push down won – traders
- Swiss August retail sales -1.0% y/y, much weaker than median forecast of +0.8%
- Japan FinMin advisor Gyohten: Japan, China, US should cooperate to stabilise dollar
- Euro zone August trade balance -4.0 bln euros from July’s revised +12.3 bln surplus
Dollar marginally firmer across the board in what looks like a bout of pre-weekend profit taking on short positions. Comments by Japanese FinMin advisor Gyohten, that Japan, China and US should cooperate to stabilise dollar will have helped prompt the move.
There were a few other little bits and pieces which also helped the dollar’s cause, like the surprising euro zone trade deficit (see above) and the IMF aussie bank warning (see above)
EUR/USD started around 1.4925 and is presently down at 1.4895 with a session low 1.4889 so far posted. Pretty boring to be honest. Sell orders continue to be noticed up at 1.4970 up through 1.5000, which will not be helping euro bull’s cause. Talk of stops above 1.4970 or 1.4975, take your pick. Also 1.4850, 1.4950 option expiries noted.
Cable has been insanely choppy in a very thin pre-weekend market. Started out around 1.6355 and came under heavy pressure early but finally found some technical support down at 1.6253 from where it bounced back strongly. We’re presently at 1.6305.
EUR/GBP came under pressure, moving down to a .9098 session low from an early .9125, where a UK clearer stepped in buying the cross aggressively and we’re presently back up at .9145.
USD/JPY has made ground, presently up at 91.05 from an early 90.70. The pairing was supported by aforemnetioned comments by Gyothen, which triggered a move to session high 91.33 before selling emerged.
AUD/USD marginally lower, down at .9210 from an early .9230. The IMF banking concerns (see above) were duly noted and brought about an early sell-off. However sources noted comments from a well-respected RBA watcher, that central bank almost certain to raise rates 50 bps next month, lending some support.
EUR/CHF little firmer, up at 1.5185 from early 1.5165. The release of much worse than expected August retail sales (see above) wouldn’t have helped swissy’s cause any.
