- Japan PM: Situation at striken nuclear plant improving slowly
- Japan a “buying opportunity,” will recover – Warren Buffett
- U.N. nuclear agency chief: Japan nuclear situation remains “very serious.” But has “no doubt” crisis will be effectively overcome
- ECB’s Mersch: ECB ready to act decisively, timely to ensure price stability risks do not materialise
- Portugal PSD opposition party leader: Won’t back govt austerity meassures. Told PM govt response inadequate and rushed.
- Earthquake felt in Phillipines capital Manilla – Reuters
- Prepare for a divided euro zone – Irwin Stelzer in WSJ
It’s been a fairly subdued start to the new week. Japanese yen generally weaker, EUR/JPY up at 115.10 from early 114.70 with GBP/JPY up at 132.15 from early 131.25. There haven’t been any reports of further G7 intervention, well not that we’ve heard. Rather there hasn’t been any further dramatic deterioration in the nuclear plant situation, with the government making reassuring noises.
USD/JPY up at 81.25 from early 80.95. Talk of buy orders clustered 80.40/50 (rumours it includes BOJ interest), stops below there. Sell orders 81.30/40 and more up at 82.00/05. Last week had been reports of huge sell orders around 82.00. Now talk some Japanese exporters have lifted their sell orders toward 83.00, so interest around 82.00 may well not be so hefty.
EUR/USD sits at 1.4165, effectively unchanged on the day. We did see some slippage to 1.4144 session low, but Asian central bank buying below 1.4150 provided support. Macro funds also seen buying around low.
Stops now seen through 1.4140 and more through 1.4100. Barrier option interest remains at 1.4200. There has been some discussion that the interest was taken out overnight (EBS high 1.4200), but consensus seems to be that it’s still in place.
Cable up at 1.6165 from early 1.6110. Swiss bank out of Zurich aggressive seller of EUR/GBP this moring (cross down at 8710 from early 8740) and this will have helped underpin cable.
AUD/USD up at 1.0065 from early 1.0020. UK funds seen buying early and major US bank helped extend rally.
