- General negativity surrounding Greece remains key factor
- EUR gaps 50 pips lower in early trade on stop-loss sales
- Greek credit spreads continue to blow out
- Ireland, Spain and Portugal following suit
- No clear winner of second UK election debate
- RBA’s Stevens says rates close to average
- Australian export prices +3.8% in Q1, import prices +0.3%
- Regional stockmarkets -0.5% on average
- Gold $1142/oz
The Asian session was similar to the NY session where there was a big move lower in the EUR/USD early on and then relative calm.
EUR/USD opened at 1.3290 but began to move lower immediately on the usual Friday risk-off and sales of EUR/JPY. Massive stops were triggered below 1.3260 and the market gapped 50 pips lower within seconds. EUR/USD eventually based out just above 1.3200 but the bounce has been restricted to 1.3240. The EUR of course also lost significant ground against all others, with the possible exception of the AUD. Range: 1.3202/93.
USD/JPY has been unable to clearly break above sell orders at 93.60/65 but dips have also been quite limited. Range: 93.32/63 and EUR/JPY 123.43/124.25.
Cable fell early in sympathy with the EUR/USD but has recovered as EUR/GBP continued it’s march lower. The election debate had little effect this time on the pound. Ranges: 1.5322/93 and .8610/39.
The AUD/USD fell 30 pips as the EUR crashed and then fell another 30 pips after the RBA governor’s speech. It has not managed to bounce since then. Range: .9210/71.
Markets: Nikkei -0.35%, HK -0.7%, Kospi -0.35%.
