- German press reports suggest Greek default being seen as inevitable
- Greek government introduces fresh austerity measures
- Japanese big business sentiment index improves dramatically
- Japan CGPI rising slowly
- Australian balance of trade +A$1.83 billion
- Regional stocks fall by 2.5%
- Gold slips by $5 to $855/oz; Oil -1%
All of the action happened in early interbank trade with the EUR/USD opening below 1.3600 after closing in NY on Friday at 1.3660. Further speculation on a likely Greek default and the resignation of Stark from the ECB were the catalysts. The EUR has been unable to rally but losses have also been limited to the 1.3560 level. Ranges: 1.3560/1.3626
The AUD has also been weakened by the increased risk aversion and hasn’t reacted to reasonably positive terms of trade data or to the strong Chinese domestic economic signals that emerged over the weekend. Some stops were tripped below 1.0380 in afternoon trade. Ranges: 1.0358/1.0440
USD/JPY has had a remarkably quiet 15 pip range despite all the risk sentiment and the raft of data releases. Ranges: 77.43/58
USD/CHF has been capped below .8900 with unconfirmed talk of barriers at that level.
Cable traded 1.5827/62