- Weekend news that FSA to probe Goldman Sachs prompted more risk averse trading
- Sterling falls on latest election polls suggesting a hung parliament
- UK Rightmove survey shows rise in home asking prices
- Regional stockmarkets fall by up to 2%
- Oil price falls by over 1.5%
Apart from the usual Monday morning volatility, it has been a fairly quiet session here in Asia. The JPY crosses fell heavily on the risk aversion associated with the Goldman Sachs news and elsewhere it has been option barriers which have kept the market busiest.
Cable opened 100 pips below it’s NY closing level on the back of the latest election polls and the FSA probe into Goldman Sachs. EUR/GBP also triggered trailing stops above .8810 and the sterling sentiment has been very bearish to start the week. Ranges: cable 1.5241/1.5314, EUR/GBP .8805/27
The AUD has been the other big loser on the session with pairs like AUD/JPY and AUD/NZD falling heavily on long liquidation. An option barrier at .9200 was erased and stops below .9190 were triggered. Range: .9183/.9244
USD/JPY triggered stops below 92.00 during the NY session but traders were reluctant to push much lower in Asia today with talk of semi-official bids around 91.50. The JPY again made gains against all other majors. Ranges: USD/JPY 91.89/92.21, EUR/JPY 123.72/124.33
The EUR/USD market was most concerned with an option barrier at 1.3450 and once this was breached we saw a minor bounce. The flight chaos in Europe means no Greek meetings for the early part of the week which traders are taking to mean no bad news. EUR fell against the JPY and the USD but managed gains against the GBP and the AUD. Ranges: EUR/USD 1.3446/97
Markets Nikkei -1.7%, HK -1.6%, Shanghai -1.5%, Kospi -1.5%, Oil -1.5%. Gold flat at $1137/oz.