- Economic data out of China shows strong industrial production and strengthening domestic demand
- China has done very little on exchange rate- Geithner
- Basel III : Bank rules agreed upon
- Financial shares rise after Basel agreement
EUR moved higher in early session trade after a large hedge fund bought a significant amount of EUR/USD. Interbank dealers soon joined in and after stops were triggered above 1.2770 and 1.2780, the pair topped out just below 1.2800. Movement since then has been very limited. EUR short positions taken on the back of a possible European banking crisis have been trimmed across the board. Ranges: EUR/USD 1.2706/94, EUR/CHF 1.2946/1.3020
USD/JPY has had a quiet 25 pip range as dealers sit back and await the result of tomorrow’s government leadership challenge. Ranges: USD/JPY 84.08/35, EUR/JPY 107.00/75
The AUD has given up some ground against the EUR but has maintained its position above 93 cents against the greenback. Ranges: .9290/.9319.
Sterling ranges: Cable 1.5356/1.5416; EUR/GBP .8272/.8306
Markets: Nikkei +1%, HK +1.75%, Shanghai +1%, Sydney +1.25%, Seoul +0.75%. Gold $1247/oz, Oil $77.25/bbl.
