- China reiterates its support for European efforts to stabilise markets
- BOJ keeps rates unchanged
- Stuttering output has stalled growth but Japanese economy should soon return to recovery mode
- Tensions calming on the Korean peninsula
- Regional stocks rally by 1.25%
- RBA minutes deem current policy to be appropriate
- UK consumer confidence still at low levels, but steady from last month
EUR/USD made a strong move higher mid-morning after China reiterated its support for EU measures at ensuring stability. The calming of tensions on the Korean peninsula also helped. Liquidity was quite poor throughout the session. Ranges: EUR/USD 1.3114/93, EUR/CHF 1.2643/1.2714
AUD/USD built on its overnight gains with lots of positive influence throughout the session; the RBA minutes were steady-as-she-goes, the higher EUR helped as did the calmer Korean situation which all added up to a risk-on session. Ranges: .9919/73
USD/JPY had another quiet session, sliding slowly lower in line with the generally weaker USD but the JPY did fall against the EUR and the AUD. The market did not react to the BOJ statement. Ranges: USD/JPY 83.57/80, EUR/JPY 109.85/110.38
Cable has moved higher although lagging the EUR slightly. Ranges: Cable 1.5503/53, EUR/GBP .8457/83
Markets: Nikkei +1.2%, HK +1.1%, Shanghai +1%, Korea +1.2%. Gold $1387/oz, Oil $89/bbl.
