- Monetary Authority of Singapore will steepen and widen the currency band, allowing a gradual appreciation in the SGD
- EUR/USD broke quickly above 1.4000 and triggered large stops above 1.4040
- Bank of Korea unexpectedly keeps rates on hold
- Japan’s CGPI flat
- South Korea protests over Noda’s intervention comments
- US Treasury department will issue currency report on Friday
- NZ August retail sales disappoint
- Regional bourses rally by 2%
- Gold and Silver make more new highs
There have been some big moves in Asia with the USD falling across the board. The selling was initiated by a sharp fall in USD/SGD after the MAS widened the SGD trading band. This USD selling soon moved into the other majors as stops were triggered in EUR/USD, USD/JPY and AUD/USD.
EUR/USD moved first after closing in NY at 1.3960. The move above 1.4000 was very sharp as dealers targeted large stops above 1.4040 and there was no sign of China selling as they have done recently above 1.4000. The initial high was 1.4058 and pullbacks were limited to 1.4030 before the upmove resumed. Ranges: EUR/USD 1.3956/1.4094, EUR/CHF 1.3371/1.3437
AUD/USD stalled initially at a barrier option at .9950 but the concerted USD selling helped drive the pair above. Momentum hasn’t been enough to challenge more barriers at 1.0000 but pullbacks have also been limited. Ranges: .9897/.9982
USD/JPY lagged much of the early USD selling leading to higher prices in the JPY crosses but with dealers waiting in vain for any BOJ activity, stops below the previous 81.38 low were eventually triggered. Ranges: USD/JPY 81.18/84, EUR/JPY 114.18/67
Cable also lagged the rise in the EUR/USD sending EUR/GBP higher and offers around 1.6000 also deterred further aggression near the highs. Ranges: Cable 1.5895/1.5993, EUR/GBP .8775/.8820
Markets: Nikkei +1.8%, HK +0.8%, Seoul +0.6%, Sydney +1.5%. Gold +0.6% $1379/oz.
