- The tensions on the Korean peninsula continue to dominate the newswires
- Japan calls on China to help restrain North Korea
- China says it will work with US to ensure stability
- US moves aircraft carrier into region, supposedly for already planned manoeuvres
- Regional stockmarkets fall early but recoup more than half of losses
- S&P lowers Irelands long-term credit rating to A (as expected)
- Australian Q3 construction work -2.1% QoQ
- Gold steady just below $1380/oz
EUR/USD opened the Asian session near it’s NY low at 1.3360 and has gradually drifted higher more due to the lack of news rather than anything positive. With little or no fresh news out of Ireland, or the other at-risk EU members either, the market has been concentrating on the Korean peninsula. Stock markets like the Nikkei opened almost 2% lower but that was as bad as it got and all bourses have sneaked higher with HK and Shanghai finishing slightly positive.
EUR/USD range 1.3363/1.3418, and EUR/CHF has had a quiet 1.3326/49 range.
USD/JPY traders were not willing to test below 83.00 with talk of China buying USD/JPY and Kampo buying some of the JPY crosses. Ranges: USD/JPY 83.13/35, EUR/JPY 111.11/75
EUR/GBP has led the cable for a change with talk of large stops below .8440 the main talking point among GBP traders. Otherwise the pound has been quiet ahead of the GDP number.
The AUD has made a solid recovery throughout the day after closing in NY around .9730. Dealers say that decent buying interest around .9700 gave the trading direction for the day. Ranges: .9720/.9805
