- EUR/USD fell 80 pips immediately after S&P announced that they were cutting Italian debt ratings by one notch and putting them on negative watch
- Greeks set for referendum vote on EU future
- Japanese government maintains economic assessment
- RBA minutes hold few surprises; wary of global turmoil but also local inflationary issues
- FinMin Azumi wants to convey to G20 (in 4 weeks) how strong Yen is affecting Japan
- China CommMin disappointed that EU not recognising China market economy status
- USD/Asia continues to move higher as foreign investors repatriate
- Nikkei -1.4%; Sydney -0.9%; Shanghai and HK +0.4%
- Gold and Oil unchanged at $1785 and $85.70 respectively
There was a sharp move lower in early trade for the EUR/USD, with a ratings agency again announcing a major decision at the most illiquid time of the day in the FX market. EUR/USD fell from 1.3675 to 1.3595 and has since consolidated these losses in a tight 40 pip range. Two recent hourly lows at 1.3585 are attracting buyers but stops probably lurk beneath. Overall range 1.3591/1.3681
AUD/USD opened at 1.0240 before falling alongside the EUR/USD. There were further falls as USD/Asia opened on a very bullish note but short covering after the RBA minutes sent the pair briefly back to 1.0240. Range 1.0144/1.0241
USD/JPY has completely ignored the lead from USD/Asia and has drifted lower on cross selling. Large stops are noted below 76.00 from option players. Range: 76.42/76
Cable 1.5653/98, USD/CHF .8815/67
