- Australian unemployment rate at 5.4% vs 5.9% expectation.
- Geithner says US bank stress-test results are “reassuring”
- Asian stock markets jump to 6-month highs
- ECB widely expected to cut rates by 25bps to 1%
A quiet morning gave way to some busy trading on the JPY crosses after the Nikkei jumped over 4% in the first hour of trade. JPY crosses jumped initially, with EUR/JPY trading to 131.50, before some gloomy talk from the Sth Korean finance ministry burst the optimism bubble briefly. Very strong Australian employment numbers reenergised the bulls and resistance at 73.50 and 73.95 were breached in AUD/JPY, triggering stop-loss buying. Bullish comments from Timothy Geithner on the stress-test process also helped. The market has quietened appreciably as we near the European open, with all eyes now on the ECB.
Markets: Nikkei +3.8%; Shanghai -0.75%; HK +0.4%. Gold $911/oz. Crude $56.50.
Orders: EUR/GBP buying at .8770; EUR/CHF buying 1.5050; Heavy EUR/USD stops below 1.3220; EUR/USD bids 1.3050/90.
Ranges: EUR/USD 1.3277/1.3322; AUD/USD .7459/.7562; USD/JPY 98.35/84; EUR/JPY 130.69/131.55; Cable 1.5100/55;