- G20 FinMins release an earlier than expected statement due to importance of current situation
- Very little in terms of details emerged, only that EZ nations would implement measures to increase EFSF flexibility before the next meeting
- RBA stability review says Australian banks in strong position to withstand any global turmoil
- UK pay deals hold steady
- BOK intervenes again in USD/KRW to smooth the rise
- Chinese government researcher warns property bubble about to burst
- US senate to pass revamped China currency bill (this won’t go down well in Beijing)
- The Nikkei was closed today but other markets fell by over 2% on average, but they did bounce back from some heavier losses early on
- Gold rebounds by 0.25% to $1748/oz; Oil $80.80/bbl
It’s been a session for the daytraders with plenty of volatility early in the session amid poor liquidity.
EUR/USD opened near 1.3460 but moved higher on the expectation that Asian central banks would take measures to slow the rise of the USD. EUR/USD got close to 1.3500 and then news that the G20 FinMins would announce an earlier than expected statement gave the EUR/USD a sharp lift, taking it to session highs at 1.3567. The actual statement hasn’t had any impact and movements dried up thereafter. Ranges: 1.3452/1.3567
AUD/USD was similarly volatile in a wide 126 pip range. It followed a similar pattern to the EUR/USD with even higher volatility and less liquidity. Ranges: .9737/.9863
USD/JPY has done nothing today with Tokyo closed again for a public holiday.
USD/CHF traded .9037/81 with plenty of volatility in the cross inside a 1.2216/82 range.
Cable 1.5336/1.5436.
