Tough start for your humble scribe this morning: Gerry has already flown the coop to go go join in the bank holiday merriment, leaving me here to soldier on by my lonesome.
Commodity currencies are well supported amid firm Chinese PMI data. AUD/USD remains well supported above 0.73, a harbinger that risk assumption is alive and well. A healthy appetite to buy that pair is seen on dips near-term as investors hope for a synchronized recovery in the G2 (US and China) in the second-half of this year.Plays like EUR/AUD are the way many choose to play, leaving the buck out of the equation all together…
Prospects for a GM bankruptcy are rising as investors balk at the idea of the unions getting a better deal than bondholders purely on Obama’s say so. Citi and BofA need to raise cash, the papers say, keeping the EUR/USD underwraps.
Stops are eyed in the 1.3180/85 region near-term; it looks like the market is taking a run at them out of the shoot. The last few weeks, early moves in the US have been the wrong ones, so we’d be cautious of getting short at the bottom of the range.
