- Mid east fund takes 9% share in DaimlerBenz
- Details emerging on US toxic asset plan
- More articles in UK press regarding RBS’ $30 billion worth of hidden toxic debt
- Japanese business sentiment index continues to fall
- ECB’s Weber says that ECB has room to move implying further rate cuts
Very early Asian trade saw the GBP/USD fall to 1.4420 on the back of more negative UK press over the weekend. This had the effect of pulling EUR/USD down also but the rest of the session has seen strong buying in EUR, AUD and GBP, fuelled by stop-loss buying of JPY crosses. With stock market futures rallying on the back of the imminent US toxic asset plan, risk plays are being reinstated in the FX market. EUR/USD was also bolstered by USD/SKR selling, as shorts taken on Friday were forced to cover after statements by the Swedish finance minister were clarified. The takeover of Daimler by AAber also fuelled EUR/USD buying.
The Nikkei is up 2.8%, the Hang Seng is +3.1%, Kospi is +2.1% and Shanghai +1.5%. Gold is down $4 at $951/Oz and Brent crude is slightly higher at $51.85.
Ranges: EUR/JPY 130.15/131.95, EUR/USD 1.3570/82, cable 1.4420/1.4537, USD/JPY 95.43/96.55 and AUD/USD .6870/.6981.