ForexLive Asian market wrap: USD, JPY, Nikkei higher
- MOF has only intervened on one day in recent times, Sept 15th
- Mixed reports on the upcoming G20 with some reports saying that both the US and China are softening their respective stances
- Elsewhere a Chinese newspaper warns of the disastrous consequences of QE2 which could include currency wars and global economic problems
- Gold and Silver make new highs before falling back
- The Nikkei rises 1%
- Greek PM stays in power after weekend elections
The markets were quite thin and volatile today and this enabled stops to be triggered either side.
EUR/USD pushed higher in early trade after the results of the Greek election were announced and also as weekend shorts covered their positions. Dealers aimed for and triggered weak trailing stops above 1.4080 before turning lower. Next up were stops below 1.3995 and there was a nasty gap lower through these. EUR/JPY selling then compounded the alls but decent sized bids in EUR/USD just above 1.3940 managed to slow the fall. Ranges: EUR/USD 1.3919/1.4084, EUR/JPY 113.05/114.28, EUR/CHF 1.3440/1.3554
The other majors have more or less followed the EUR around, but to a lesser degree. Cable rose to 1.6211 before falling back on GBP/JPY selling out of Tokyo. Ranges: Cable 1.6108/1.6211, EUR/GBP .8639/92
AUD/USD has also been primarily influenced by flows in the crosses like EUR/AUD and AUD/JPY. Ranges: AUD/USD 1.0092/1.0165
USD/JPY has ignored the rebounding greenback and given up a small amount of ground as the selling in the JPY crosses dominated. Ranges: USD/JPY 81.15/43
Markets: Nikkei +1%, HK and Seoul -0.1%. Gold $1390/oz.