- Fujimura says government watching euro-yen level carefully.
- Azumi says ready to act against “excessively volatile” and “speculative” currency moves. “Carefully” watching currency situation for now. Yen is rising against euro over concerns on Europe’s economy and sovereign debt problems .
- Euro declines to 11 year low against the the Yen at 94.87 , Euro/Yen currently at 94.68.
- Japan’s cabinet economic assessment sees more signs “the slowdown in the global economy is becoming more widespread”. The expansion in China has “slowed a bit”. They expect the BOJ to continue powerful monetary easing until the exit from deflation is ensured .
- Australian 2 qtr. PPI rises 0.5% vs qtr ago, rises 1.1 % vs. year ago. slightly higher than expected .
- PBOC sets Yuan at 6.3270 vs. 6.3112 on Friday . Weakens rate by 0.25% amid concern Europe debt crisis may worsen and China’s growth is slowing.
- Nothing but bad news on the European front , take your pick Spain, Italy, or Greece.
Risk off session as the market went long USD and the JPY . With the Euro starting the session near the highs of 1.2130 , then consolidated most of time around the 1.2115/25 level . Usd/Jpy slowly drifted lower starting at the 78.50 to a low of 78.13. With no signs of BOJ intervention other than the expected statements from the BOJ/MOF , the Yen remained strong vs all the major currencies. Aussie $ came under pressure as Aud/Jpy stops were triggered at 80.80 and as buying interest at 1.0350 dried up with stops being triggered below . Aud finding some support here at 1.0300, but not sure how long it will hold . Ditto the Euro at 1.2100.
