- After major risk-aversion moves lower overnight the Asian market has consolidated these losses but lacked momentum with Tokyo again closed
- Regional bourses lose close to 2%
- Australian March building approvals +15.3% against +1% expected
- UK jobs growth still strong but slowing down
- UK April shop price inflation rises in April
- Chances of Tory majority improving
Once again it was a remarkably quiet session in Asia after some major moves overnight. This was in large part due to the Tokyo financial markets being closed but they will reopen tomorrow.
EUR/USD closed in NY around 1.2970, just above its lows, and has had a fairly quiet session inside a 1.2940/92 range. Some light stops were triggered below 1.2950 after a EUR/JPY selling flow hit the market mid-morning but with order books cleaned out and traders nervous, there was no follow through.
EUR/JPY stalled again just above its lows from last week at 122.60 but the bounce has also been negligible. The inability of USD/JPY to break above 95.00 is also weighing on the cross. There was talk overnight that Kampo has buying interest around the 94.30 level in USD/JPY. Ranges: USD/JPY 94.58/90 EUR/JPY 122.60/123.17
Cable has been fairly quiet again in Asia, following the lead of the EUR/USD and the pound has made more minor gains against the EUR. The latest election projections and the economic data were all slightly GBP-positive. Ranges: cable 1.5108/54, EUR/GBP .8557/79.
The AUD/USD closed in NY just above technical support at .9070/75 and after a brief profit taking rally it has settled into a quiet session. Range: .9075/.9117
Markets: HK -1.8%, All Ords -1.9%, Shanghai -1.2%. Gold $1172/oz.
