- The USD makes some early gains then consolidates ahead of Bernanke, economic data, and Treasury report later tonight
- China MOFCOM: US and Japan wrong to criticise China
- China FDI +16.6% YoY
- Fed’s Kocherlakota: Effect of QE2 likely muted
- Regional stockmarkets down 0.3% on average
- Gold steady at $1381/oz
There was an early flurry of activity as EUR/USD fell 70 pips from its NY closing level near 1.4080. The fall bottomed out just above 1.4000 and after retracing about half its losses, the pair has stagnated for the last 4 hours. Profit taking by USD shorts ahead of tonights risk events has been the main factor. Ranges: EUR/USD 1.4010/82, EUR/CHF 1.3386/1.3426
Cable lagged the fall in the EUR/USD as EUR/GBP selling emerged with talk of some expected cross sales tonight during the London session. Ranges: Cable 1.5975/1.6010, EUR/GBP .8763/96
AUD/USD fell below .9900 as the USD short covering emerged but it has also been unable to sustain any more momentum after big moves this week. Ranges: .9892/.9940
USD/JPY ignored a plethora of comments from Japanese politicians and from the BOJ to finish more or less unchanged after a tight 26 pip range, .8134/60. EUR/JPY 114.11/69.
Have a great weekend all and good luck tonight!
