- The lack of any concrete proposal emerging from the EZ FinMin meeting in Poland saw EUR/USD open 100 pips lower in early interbank trade (for the second Monday in a row)
- USD/Asia continued to edge higher as foreign investors exited bond markets in particular
- The Nikkei was closed, other regional bourses fell by 1.5% on average
- UK house prices rose slightly in September
- Ruling coalition fares badly in German elections
- Oil falls by 1.25%; Gold +0.7% to $1827/oz
All of the day’s movement happened in very early interbank trade with EUR/USD falling 100 pips immediately on the market open. The lack of any progress at the FinMin meeting was the initial driver. We traded a tightish 1.3680/1.3710 range for most of the morning before another spike lower when HK opened and their sharemarket fell by over 2%. Ranges: 1.3645/1.3715
USD/JPY was very quiet with a public holiday in Japan. Ranges: USD/JPY 76.84/98
AUD/USD fell initially on the lead from EUR/USD, to 1.0310 from its NY closing level at 1.0350. Falling stockmarkets increased risk aversion and drove the AUD lower and increasing demand for USD/Asia also weakened the Aussie. Ranges: 1.0229/1.0325
Cable eventually broke through strong bids at 1.5700 but there was no major follow-through as more Sovereign bids were reported 1.5670/80. Ranges: 1.5684/1.5739
USD/CHF traded .8796/.8832
