- Troika sees sharply higher Greek budget gap of 20 bln euro-mni
- EMU states preparing to quadruple ESM volume-MNI
- EMU plans package deal for Greece, Cyprus, Spain.-MNI
- France PM: Greece should have more time for adjustment-MNI
- BOJ August minutes show concern over slow price rise.-MNI
- China Beige Book shows optimism drops as job cuts rise.-bbg
Today’s trading was mostly ‘risk off ‘ as the dollar firmed along with the yen against their counterparts. Gold and oil came under pressure along with the SSEC heading towards the toilet as concerns over China’s growth continues. Market has since given back some of the dollars gains before Europe comes in. Tensions still remain between China and Japan over the ‘Islands’ with Chinese ships coming and going. Noda speaking at the U.N. Assembly and the Chinese canceling/postponing an anniversary ceremony of diplomatic ties doesn’t make things any better.
EUR/USD failed to even test the top side as it slowing drifted lower from the opening to test support levels at the 1.2920/30. Stops building below 1.2900 with some buying interest 1.2870/80.
USD/JPY touched the 78.00 level but again held its ground. Stops reported below but safe for now.
AUD/USD again held the 1.0400 level and has made a decent bounce to 1.0430/35 despite all the negative news over China and softening metal prices.
Dollar still looks range bound around these current levels, but I’m sure we can count on a bit of jawboning later today over the Greeks to liven thing up.
Have a good day and good luck.
