- Fiscal half-year end in Japan has seen exporters active in hedging plays
- Latest Japanese trade surplus much lower than expected as strong JPY weighs
- Japan’s CSPI posts 23rd consecutive monthly drop
- Japan’s 3rd biggest consumer lender may be headed into bankruptcy
- UK Hometrack house prices -0.4% MoM
- IMF sees German GDP growth at +3.3% in 2010 and +2% in 2011
- Industrial profits in China grow by 55% YoY
- Yuan trades at 17 year high despite ‘weak’ official fix
- US Treasury preparing to sell stake in AIG
- Regional stockmarkets rise by 1%+
USD/JPY and the JPY crosses have experienced mild selling pressure throughout the session as Japanese corporates sell foreign currencies ahead of the fiscal half-year end this week. This has partly been offset by improved risk sentiment from higher stockmarkets. Ranges: USD/JPY 84.20/39, EUR/JPY 113.35/79
EUR/USD opened the session at 1.3485 and tried on a few occasions to mount an attack on option barriers at 1.3500, to no avail. EUR/JPY selling around the time of the Tokyo fix drove the EUR/USD lower and triggered weak stops below 1.3455. The pair has traded in a 10 pip range for the last 4 hours. Ranges: EUR/USD 1.3448/95, EUR/CHF 1.5253/85
Cable has traded in a very tight 30 pip range, 1.5809/42 and EUR/GBP .8507/43. There is talk of some major flows to happen this week in the cross.
The AUD tried to break higher in early trade but lacked momentum and AUD/JPY selling has managed to quieten the bulls for today at least. Ranges: AUD/USD .9575/.9623.
Markets: Nikkei +1.0%, Kospi +0.5%, Shanghai +1.0%, HK +1.2%, Sydney +1.3%. Gold steady at $1297/oz.
