No economic data releases

News

  • US Treasury wants other countries to adopt the “financial crisis responsibility fee”
  • Rumour that German Chancellor Angela Merkel to resign having lost the support of her coalition partners.
  • Euro weakens against the Yen and the dollar on speculation of a slowdown in China

Currencies

  • Euro opened the session around 1.4500 and traded there for the first few hours. In fact the market was exceedingly quiet across the board during that time. A push lower mid Tokyo morning saw the support level at 1.4476 tested and ultimately broken. After a short period of consolidation serious selling by Model Fund and Investment Bank names combined with stops being triggered saw the Euro drop like a stone to 1.4425 against the dollar and to 131.25 against the Yen. The rumor stemming from the Time Magazine article on Angela Merkels resignation and comments out of Tokyo on speculation of a slowdown in China helped fuel a further move to the session low of 1.4410. Since that time the Euro has settled into a 1.4415 – 1.4435 range.
  • 91.15 – 91.25 covered the early range until pressure on the dollar saw the currency testing the support level at 91.00 which eventually gave way seeing the dollar dip to its low of 90.91. Buying of dollar Yen has seen an upward push back through 91.00 to current levels.
  • Cable followed a similar scenario to that of Euro – dollar with a range early on of 1.6320 – 1.6340 before downward pressure and a break of 1.6300 to its session low of 1.6283 before popping back over 1.6300 and getting a boost back to 1.6335 before slipping back to its current level.
  • Dollar Swiss a quiet start before aggressive dollar buying by the Investment Bank type names saw a rapid spike from 1.0200 to 1.0225 and then a further boost to 1.0254 before settling around 1.0225
  • Aussie and Kiwi had similar session to the other high yielders with Aussie breaking the key level of 0.9300 holding at 0.9290 before dropping to its low of 0.9254 a recovery to 0.9270 then followed. Kiwi started the day at the 0.7420 level dropped to 0.7395 then to 0.7368 where it bottomed out before drifting back to 0.7380.

Ranges

EUR/USD 1.4410 – 1.4510 USD/JPY 90.91 – 91.31 GBP/USD 1.6283 – 1.6353 USD/CHF 1.0179 – 1.0254 USD/CAD 1.0229 – 1.0265 AUD/USD 0.9256 – 0.9319 NZD/USD 0.7370 – 0.7430 EUR/JPY 131.11 – 132.27 EUR/GBP 0.8808 – 0.8880

Session closing rates as at 12.00 a.m. EST

EUR/USD 1.4418/21 USD/JPY 91.08/11 GBP/USD 1.6335/39 USD/CHF 1.0238/42 USD/CAD 1.0254/59 AUD/USD 0.9268/72 NZD/USD 0.7381/86 EUR/JPY 131.21/24 EUR/GBP 0.8824/28

Dollar Index 77.210 (+ 0.325)

Gold 1137.80/8.50

Oil 79.03

Nikkei 225 trading at 10,909-70 higher by 2-10 (+ 0.02 %)

Hang Seng trading at 21,664-38 lower by 52-57 (- 0.24 %)

Kopsi trading at 1,694-05 higher by 8-28 (+ 0.49 %)

Shanghai Composite Index trading at 3,231-69 higher by 16-14 (+ 0.50 %)

Have a great weekend see you all again soon Sean will be back on Sunday night/ Monday morning