Apart from the early surge in EUR/USD which also dragged some of the EUR crosses higher, it has been a relatively quiet session.

EUR/USD closed in NY around 1.2100 and opened slightly firmer as EUR/JPY shorts were pared on the open. With Sydney closed, there wasn’t much movement in early trade but once Tokyo entered the market stops above 1.2150 were targeted. They were tripped on the second time of asking and the market gapped 40 pips higher before steadying. Further stops above 1.2190 and 1.2205 were also triggered but selling eventually capped just below 1.2210. Ranges: EUR/USD 1.2118/1.2207, EUR/JPY 111.11/112.01, EUR/CHF 1.3904/66.

USD/JPY also opened slightly above it’s NY closing level and drifted higher throughout the session on JPY cross buying. Range: 91.62/93

Cable has underperformed the EUR/USD somewhat as EUR/GBP continued to add to the gains made on Friday. Talk of a possible interest rate rise has been negated by the continuing uncertainty regarding BP. Ranges: Cable 1.4563/1.4614, EUR/GBP .8323/60

The AUD has benefitted from the improved risk appetite and hasn’t managed to dip at all since making its early move higher. Range: .8511/69.

Markets: Nikkei +1.5%, Kospi +1.1%, Gold $1232/oz, oil +1% at $74.50