- An early stop-chasing spike higher in EUR/JPY proved a false alarm as movements since then have been almost non-existent
- US Treasury Secretary Geithner has left Beijing without major announcements
- NY Times article suggests a revaluation is imminent, with market expecting 3%
- Reports in German newspaper suggest that the Bundesbank is very critical of the IMF/Greece plan
- China may post first monthly trade deficit in 6 years
- Regional stockmarkets mixed to flat
- Gold holding steady above $1150/oz
Well telegraphed stop-losses in EUR/JPY above 125.00 were the first target this morning as the cross moved swiftly from it’s NY closing level at 124.80 to 125.15. Momentum was lacking to trigger more stops above 125.35. Despite the bearish news for EUR/JPY in the form of Yuan and Greek speculation, the cross has maintained a bid tone for the session. Ranges: USD/JPY 93.35/62; EUR/JPY 124.70/125.15.
The AUD/USD was again unable to test the resolve of option protection at .9300 but dips have also been shallow as the 16 pip range can attest. No major news emerged and the market is on hold ahead of news from Beijing. Range: .9278/94.
The EUR/USD also failed to generate any further momentum after the initial EUR/JPY buying pushed it from it’s NY closing level at 1.3360 to its session high of 1.3384. With little positive news emerging from Europe, only short-covering is helping to drive it higher. Range: 1.3352/84
Cable also had a quiet 34 pip range, 1.5269/1.5303, and EUR/GBP .8739/48.
Markets: Nikkei flat; HK +1.2%, Kospi -1.0%. Gold steady at $1152/oz.
Thanks for your patience this week and I wish you all a pleasant weekend. All your’s Gerry, enjoy!
