- Naoto Kan elected new Japanese PM
- Level of Japanese public debt remains a big issue
- IMF not properly resourced: steering committee
- Britain cannot inflate its way out of public debt: BoE’s Bean
Very quiet session in Asia today with EUR/JPY rattling around in a 40 pip range and nothing much else moving. EUR/CHF consolidated it’s overnight fall and is once again closing in on the pivotal 1.4000 level.
EUR/JPY opened near it’s session lows at 112.60 and has tried to rally on a number of occasions, firstly when media reports stated that Kan would be elected and also when confirmation actually arrived. Corporate offers in USD/JPY above 92.85 have stalled any bullish momentum and further offers are layered through 93.15. Ranges: EUR/JPY 112.55/113.11, USD/JPY 92.54/86.
EUR/USD has been dragged higher by EUR/JPY buying but weighed on by bearish sentiment in EUR/CHF and EUR/GBP. Range in EUR/USD: 1.2158/85.
No news developments of any note relating to the AUD and the AUD/USD has seen a quiet .8418/56 range.
Cable range 1.4619/44, EUR/GBP .8310/27.
Markets: Nikkei +0.3%, HK -0.1%, Kospi +0.2%. Gold $1209/oz.
