- Fed paying more scrutiny to European banks in US- WSJ
- Regional stockmarkets fall by over 0.5% on average, encouraging some mild risk-aversion
- Japan posts trade surplus in July
- ECB Nowotny worried about low growth, low inflation
- Gold slides by 0.25% to $1790/oz
- USD/CNY fixed at 6.3942
Very quiet again in Asia with crosses like EUR/JPY and AUD/JPY sliding slowly lower on some mild risk aversion but no discernible trend looking likely to emerge anywhere.
USD/CHF was quiet in a 30 pip range between .7885/.7915 for much of the morning session, with dealers unsure how to react to the SNB moves from yesterday. Most people decided that taking a day off was the sensible move. EUR/CHF traded 1.1380/1.1415, which was more like the market spread in some recent markets!
EUR/USD opened at 1.4430 and edged lower through the morning on some modest EUR/JPY selling. The Nowotny comments that Euro bonds aren’t really up for discussion at the moment and that the EZ is heading towards a Japan-like experience of low growth and low inflation, didn’t help EUR sentiment. Ranges: 1.4393/1.4435
AUD/USD tried to establish a foothold above 1.0550 on a few occasions this morning but AUD/JPY selling out of Tokyo has weighed throughout the morning session. Ranges: 1.0500/55
USD/JPY is corralled by sizeabl orders either side and has traded a tight range, 76.50/67
Cable 1.6511/43, EUR/GBP .8714/29
