- The Asian FX market was quiet ahead of what should be a busy end-of-month session in Europe
- ECB Noyer: Situation in Europe has worsened over last 2 weeks
- Tensions across the Middle-East continue to escalate
- Regional stockmarkets fall by 1.5% on average
- EFSF Regling: Impossible to give exact number
- Gold $1720/oz; Oil $99.10/bbl
EU FinMin meetings will continue into Wednesday with the market awaiting more information on the EFSF, which is now expected to be leveraged between 2 and 3 times. Greece will receive its next tranche of aid and talks continue over changes to tighten fiscal rules.
EUR/USD rallied in early trade on some of the EFSF headlines but it has struggled to maintain any momentum with traders sidelined ahead of month’s end. We close near the middle of a 50 pip range though we can expect some serious movement tonight with orders and flows increasing. Range: 1.3306/58
AUD/USD was also busy, moving higher in the morning to take out weak stops just above the overnight highs but then falling quickly back towards opening levels. .9993/1.0086
USD/JPY again tried to rally early in the forlorn hope of some intervention but it has drifted back lower as the session progressed. Ranges: 77.84/78.10
Cable 1.5581/1.5624; USD/CHF .9180/.9219
