- The MAS revalues the SGD after raising growth and inflation forecasts
- USD/SGD falls 1% immediately and bounces have been limited
- Event leads to heavy buying of EUR/USD and other majors
- New Zealand retail sales falls unexpectedly, -0.6% against +0.2% expected
- Latest Australian consumer confidence index falls 1%
- Fed’s Lacker sees need to withdraw stimulus carefully
- Chinese minister: foreign pressure for Yuan revaluation is unwarranted
- Intel gains 4% after hours on strong sales forecasts
- Regional stockmarkets make solid gains, Gold steady above $1150/oz
We were anticipating an uneventful session after a quiet NY afternoon but all this was changed by the MAS announcement of a SGD revaluation. This led to some heavy buying of EUR/USD and AUD/USD amongst the majors and also of some sharp moves higher in the JPY crosses as risk-on sentiment prevailed. This sentiment was also helped by the strong Intel forecasts which have buoyed regional stockmarkets.
EUR/USD saw some very heavy turnover as big offers at 1.3630 and 1.3650 were easily chewed through. EUR/JPY rallied to re-test Monday’s high at 127.45 and the pullback in either pair has been quite negligible. Ranges: 1.3605/65 and 126.76/127.46.
USD/JPY has been at the mercy of cross flows in a fairly sedate 93.17/35 range.
The AUD saw some heavy buying out of Japan and has also been unwilling to give up any of its intraday gains. Range: .9276/.9326.
Cable has followed the EUR/USD higher although to a slightly lesser degree as the cross put on 15 pips. Ranges: cable 1.5373/1.5426 and EUR/GBP .8840/59.
Markets: Nikkei +0.3%, Singapore +0.9%, HK flat, Kospi +0.9%. Gold +$2 to $1156/oz.
