- Looks highly likely that Gaddafi has been ousted in Libya
- Both Merkel and Schaueble quoted in weekend press saying Eurobonds not right at this time
- Japanese FinMin Noda continues with verbal inetrvention; watching markets, talking with other countries etc
- Gold makes new highs above $1880/oz before steadying
- Regional stockmarkets mixed, pretty flat on average
The first move of the day was in the CHF when reports came through that Gaddafi was finally ousted in Libya. EUR/CHF opened 50 pips above it’s NY closing level but the move lacked momentum and was undone before the Asian open. The CHF has gradually edged higher throughout the session. Ranges: EUR/CHF 1.1274/1.1365
AUD/USD was the next pair to move as it moved sharply when a HK based buyer entered the market. It had been sliding lower in early trade on the prospect of equity market related risk aversion but gapped higher when the buyer caught the market short. It has slid back towards mid-range as the quiet session unfolded. Ranges: 1.0357/1.0441
USD/JPY was the final mover of the session, gapping from 76.80 to 77.20 and then just as quickly back again. The market is constantly wary of intervention and is susceptible to gaps higher. Ranges: 76.53/77.19
EUR/USD closed in NY at 1.4385 and has done little in a 35 pip range between 1.4360/95. The Merkel and Schaueble comments have certainly created some mild EUR-bearish sentiment but the Asian market has had little or no interest. No reports of any decent flows/orders to excite traders.
Cable 1.6465/1.6509; EUR/GBP .8707/27
