- Japanese current account +Yen 304 billion
- MOF seemingly switching intervention tactics; happier to buy by ‘stealth’ rather than shock-and-awe with large amounts
- Greek government revenues continue to collapse
- Market still pricing in an RBA rate cut at next meeting
- UK consumer prices continue to fall
- Regional stockmarkets +0.6% on average
- Gold $1750/oz; Oil $99/bbl
Another very quiet session in Asia and you know when USD/JPY has the biggest range, that it’s been a very quiet one indeed.
After yesterday’s FX reserves data and subsequent statements, it seems clear that the MOF is changing it’s intervention tractics and will now operate by stealth, accumulating USD/JPY on dips and slowing down any sell-offs, rather than its previous tactic of trying to drive the market higher in one attempt. This has given USD/JPY a modest lift today but the market is also aware that plentiful corporate and real-money offers await any rallies. Ranges: 76.71/77.08
EUR/USD has had a quiet 25 pip range, consolidating near the break-up level at 1.3250. There will be plentiful risk events in Europe later and Asian traders avoided the pair. Range 1.3239/66
AUD/USD has consolidated quietly near 1.0800 with decent sized orders at 1.0750/1.0820 hemming in the market for now. Ranges: 1.0777/1.0809
Cable 1.5885/1.5902; EUR/CHF 1.2081/95
