- Japanese Government calls on BoJ for further monetary easing
- Japanese PM to face leadership vote
- Australian Q2 Capex weaker than expected at -3.9% QoQ
- Australian election: PM’s chances improve as Independents disagree with Opposition
- China continues to expand its non-financial overseas investments
- UK economy: Pay growth steady
- Regional stockmarkets gain by up to 0.5%
It has been a busy session for the JPY crosses with first political events and then stop-loss runs driving the market.
USD/JPY opened at 84.60 but moved higher initially on calls from the Japanese Govt to the BoJ to ease monetary policy further. There was heavy turnover around the previously pivotal 84.75/80 level and the market got as high as 86.90 before running out of steam. Stop-loss moves in the EUR/JPY and GBP/JPY during afternoon trade have been mainly driven through the base currency component. Ranges: USD/JPY 84.56/90, EUR/JPY 107.09/84, GBP/JPY 130.75/131.95.
EUR/USD has edged higher through the session driven once again by EUR/JPY flows. EUR/CHF has also managed a modest gain as traders put some risk trades back on the table. Ranges: EUR/USD 1.2651/1.2721; EUR/CHF 1.3034/79
Cable has made a sharp move higher in the afternoon driven by some sizeable stop-loss orders in both cable (above 1.5525) and GBP/JPY (above 131.50). Early session moves were relatively slow as GBP/JPY buying ate through decent cable offers towards 1.5510. Once the offers were filled the stops were triggered and cable gapped 30 pips higher. Ranges: Cable 1.5468/1.5563, EUR/GBP .8171/95.
The AUD has lagged the gains in the other majors with disappointing Capex data and the on-going political uncertainty deterring buyers. AUD/USD will nonetheless close the session about 10 pips higher but the AUD lost ground against the EUR and the GBP. Ranges: AUD/USD .8833/74
Markets: Nikkei +0.3%, All Ords +0.6%, Seoul +0.3%, HK flat. Gold unch at $1241/oz, Oil +0.5% at $73/bbl.
