- US does not label China a currency manipulator
- China increases it’s purchases of JGBs dramatically
- South Korea raises interest rates by 25bps to 2.25%
- Regional stockmarkets make some strong gains late in the session
- Gold and oil unchanged
You know its been a quiet session when USD/JPY has the widest range and that was only 33 pips. The positive lead from Wall Street and the decision by the Obama administration not to label China a currency manipulator should have been bullish for risk but as it’s Friday, dealers have been less than willing to get involved.
EUR/USD managed to break above 1.2700 late in the NY session but the rumoured ‘huge’ stops above there either did not eventuate or were swallowed up by some big sellers. Either way, the lack of momentum suited Asia and the crosses have also been quiet. Ranges EUR/USD 1.2675/1.2702, EUR/CHF 1.3310/45, EUR/GBP .8370/81.
USD/JPY struggled to break above solid sell orders around 88.65 but did eventually succeed, albeit marginally. Range: 88.38/71
The AUD/USD has traded in an .8748/80 range, swinging up and down with short term changes in sentiment.
Cable has been similarly quiet as can be seen from the very small range in EUR/GBP. Ranges: cable 1.5133/63
Markets: Nikkei +0.4%, HK +1.5%, All Ords and Kospi +0.5%, Shanghai +1.3%. Gold $1198/oz, oil $75/bbl.
