- Australian owner occupied financing -3.4%
- New UK government likely to have very short honeymoon period
- South Korean unemployment -3.7%
- South Korean central bank keeps rates unchanged at 2%
- Gold makes new highs above $1230/oz
- Regional bourses around 0.5%
It has been a quiet session in Asia today with the session only being notable for some GBP selling especially on the crosses.
The pound rallied strongly overnight after the new UK government was announced. These gains have been undermined by the article in the UK Telegraph regarding the EU emergency fund and also by the prospect of strikes by both BA and Unity. Cable opened at 1.4960 but has fallen steadily throughout the session most notably when some GBP/JPY flows hit the market in early Tokyo trade. Ranges: 1.4881/1.4964, .8452/97
EUR/USD fell early in the session when the US stock index futures fell 0.5% in after hours trade. This saw EUR/JPY fall from 117.30 to 116.70 and EUR/USD from 1.2660 to 1.2620. The single currency has subsequently benefitted from short covering in the EUR/GBP. Range: 1.2617/64
USD/JPY has been lively in a 50 pip range, again being determined by flows on the crosses. Range 92.45/95
The AUD was unaffected by economic data and has been quiet inside a 40 pip range, .8935/75.
Markets: Nikkei +0.4%, Kospi -0.1%, Sydney +1.1%. Gold +$9 to $1229/oz.
