- Further positive developments make a Greek debt restructure look more likely
- China reduces RRR by 0.5%
- Japan posts record trade deficit in January
- UK home asking prices show sharpest rise in 10 years
- Regional stocks +1% on average
- Gold $1737/oz; Oil $105/bbl
All of the action happened in early trade, with the EUR, NZD and AUD all rallying strongly on the back of a likely Greek debt restructure and the cut in the Chinese RRR.
EUR/USD closed in NY on Friday near 1.3140 but rallied in early interbank trade to 1.3200 and then surged again once the retail market joined in. EUR/JPY buying was again a significant factor but strong technical resistance in the form of a previous daily high stalled momentum at 105.70. EUR/USD topped out in early Tokyo trade but still hasn’t managed to break back below 1.3200. Ranges: 1.3172/1.3236; EUR/JPY 104.95/105.70
AUD/USD also opened higher, up at 1.0790 after a NY close near 1.0725. NZD buying was also very visible but like in the EUR, all momentum evaporated shortly after the Tokyo open. Ranges: AUD/USD 1.0760/1.0815
USD/JPY rallied in early trade on the back of movements in EUR/JPY and AUD/JPY particularly, but talk of very large corporate sell orders in USD/JPY above 80.00 helped quell any over-exuberant bullish momentum. Ranges: 79.41/88
Cable 1.5833/79; EUR/CHF 1.2082/99
