- Silver falls by over 2%, Gold 1% lower
- Rightmove UK house prices show sharp rise
- NZ CPI +1.1% QoQ
- Japan’s tertiary industry index -0.2% MoM
- Regional bourses show mixed results
The market breathed a large sigh of relief after the Bernanke speech and currency report deadlines passed on Friday. With the market sitting overly short USD, a bout of short-covering and stop-loss hunting has ensued.
EUR/USD opened at 1.3980 and was unable to get back above 1.4000 in early interbank trade. The rest of the session has seen a series of stop-loss levels being triggered with the heaviest stops sitting below 1.3900 and 1.3880. Ranges: 1.3864/1.3990
AUD/USD opened higher after further comments from the Australian treasurer saying that authorities would not intervene. These losses were quickly reversed once the USD buying commenced and stops below Fridays .9860 low were eventually triggered. .9828/.9925
Cable held up better than the EUR, buoyed by the strong housing data and helped by EUR/GBP selling. Cable started playing catch-up once stops below 1.5950 were triggered. Ranges: 1.5917/1.6015; .8708/43
USD/JPY has had another quiet day with USD buying being balanced out by selling in the JPY crosses. 81.25/47; EUR/JPY 112.82/113.97
