- ‘Fat Finger’ responsible for the mishit trade in Eur/Chf at 1.20928.
- Obama speaks with Rajoy on the Euro zone , pledges support on Spain’s “difficult challenges”.
- Fed’s Fisher speaks : Monetary easing won’t be effective, would be a mistake . U.S economy ready to rock and roll, is being throttled by lack of action on fiscal policy. Friday’s job report was clear signal to Congress to ‘get act together’ on fiscal policy. Businesses reluctant to hire without knowing what taxes and government spending will be.
- NZ average hourly wages rose 0.2% (0.5% forecast) . Ordinary time wages rise 2.1 % from year ago.
- UK BRC July sales rose 0.1% (-0.2% forecast) . Warm weather and the Olympics being cited .-MNI
- Australia AiG construction index 32.6 vs (prior 34.8).
- Azumi to extend dollar loan facility to cope with the strong Yen .-MNI
- Germany and Italy near blows over Europe.- The Telegraph
Euro : After eight hours of trading the Euro is right where it was when we started the session around 1.2400 . It saw a brief dip to 1.2385 just above small bids at 1.2375/80. Sellers lined up at 1.2450, but market barely tested high of 1.2407.
Usd/Yen : On the sidelines tonight with a brief test lower to 78.15 . Highs of 78.30 kept the 15 point range intact . Bids at 78.00/offers above 78.50 makes for a quiet day ahead.
Aussie $: Failed to test the 1.0600 barrier but remains firm here at 1.0585 . A brief test of 1.0550 support stalled and we now await the RBA decision in about 20 minutes . Expectations are that the RBA will leave the cash rate unchanged at 3.5%.
Good Luck
