- BOJ Minutes: Must avoid policy which is seen as monetisation
- Japan April CSPI +0.2% YoY, compared with -0.2% last month
- EZ bank funding reports give EUR a lift
- Greek weekend polls show pro-bailout parties back in lead
- China industrial company profits -2.2% in April
- RBA Stevens: No doubt that Chinese data is on softer side
- EUR short positions seen at record levels
- Regional; stockmarkets fairly quiet with Tokyo and Shanghai flat, and HK +0.4%
- Gold $1575/oz, Oil $91.70/bbl
EUR and the risk trades like AUD and NZD opened higher in early interbank trade on the back of reports that EU banks were about to receive some extra bail-out possibilities and that the Greek pro-bail-out parties had regained control in the polls. CFTC reports on market positioning also suggested that the market might be ripe for a retracement or at least some consolidation.
EUR/USD closed in NY just above 1.2500 but has spent the entire session trading above 1.2550 after an opening gap higher. The Greek poll results when combined with reports of an EU bank rescue fund as well as further Spanish government measures to shore up their banks, all helped to improve the dire risk sentiment from last week. EUR/USD traded to 1.2580 early on, couldn’t break back below 1.2550 and then started to rally again. Ranges: 1.2530/98
AUD has performed very well on the improved risk sentiment and a bearish technical break in EUR/AUD also helped the Aussie. AUD/USD closed in NY at .9760 but opened above .9800 and hasn’t looked likely to dip much throughout todays session. Ranges: .9760/.9864, NZD/USD .7542/.7629
USD/JPY started the day near 79.70 and has gradually edged lower despite some short-covering in AUD/JPY. The BOJ minutes were again very cautious and this allied with corporate selling has kept the USD/JPY tone bearish. Ranges: 79.34/72, EUR/JPY 99.76/100.16
Cable 1.5656/1.5707, EUR/CHF 1.2010/32
