- this morning’s market move certainly illustrated some caution on the part of yen shorts; the brief bounce in USDJPY after the retail sales got knocked back by sellers who probably earlier were suffering a bout of nerves at 95.50. Having said that the bid this morning was solid and impressive. Perhaps the spec market is looking for the 95.00 test. If the USD gets an upward wind and can overrun the offers we may yet see a move back towards 96.50 and some consolidation.
- The euro has dipped with the soft EURJPY but the option interest could pull EURUSD back to 1.3000-25 which is likely to then drag the former pair back towards 125.00; a break of 1.2950 will get the bears all fuzzy (joke there somewhere).
- Sterling doing well with cable holding 1.4950 and the EURGBP at an intra-day crossroads 0.8675.
- Meantime the aussie battler hardly dipped below 1.0300 and while it hasn’t marched on it is starting to increase it’s appeal.
Good luck all and see you soon.
