- Japan April CPI +0.2% YoY
- UK median pay deals increase by 0%
- Fed’s Dudley sounds bit less dovish
- Christchurch shaken by 5.2 earthquake, no damage reported
- Japan EconMin sees no change to BOJ policy of powerful easing
- Italian PM Monti: Germany can be persuaded on Euro bonds
- Regional stocks make small early gains but fall back late to be -0.25% on average
- Gold $1555/oz; Oil $90.75/bbl
AUD/USD was again the most volatile of the major pairs inside a 60 pip range. The market was eying important support in EUR/AUD and heavy trailing stops below 1.2800 and it tried buying the AUD first up in anticipation of a stop-loss fest. This did not materialise despite the negative EUR sentiment, which goes to show how bearish the AUD actually is. Sovereign names sold steadily above .9775 and this capped the pair. The New Zealand earthquake reports caused a late sell-off in thin markets. Ranges: .9723/83
EUR/USD has been stalling ahead of more barriers at 1.2500 but bounces have been very small. The Monti comments regarding Eurobonds did briefly resuscitate the bulls, but it was short lived. Ranges 1.2519/53
USD/JPY saw some modest corporate fixing demand but this was largely offset by some Uridashi redemptions and the net effect was a modest 15 pip rally. Ranges: 79.52/75, EUR/JPY 99.70/100.02.
EUR/CHF saw a nasty spike overnight and Asian trade also saw an unusual 30 pip spike on the back of buying by a UK clearer and some of the bigger hedge funds. Ranges: 1.2008/37
USD/Asia spiked higher in late trade as markets thinned out and dealers covered pre-weekend.
Cable 1.5648/77
