- Very quiet trading session with all of the majors virtually unchanged from the NY close
- Regional stockmarkets are flat to marginally higher
- Gold and oil both lost ground overnight
- The Xinjiang riot death toll continues to rise
- The pre-G8 meetings continue with President Obama set to meet with Russian PM Putin
- Latest from AEP in the UK Telegraph as he remains focussed on Eastern European banking problems
- The Telegraph is also reporting that plans to overhaul the UK financial regulator may be put on hold
- NZ business confidence improves markedly
Most of the selling in JPY crosses yesterday came from technical model funds but there has been no sign of them so far today. In fact, the first trailing stops have been spied above 133.75 in the EUR/JPY. Some of the EUR/JPY selling was caused by the break of a bullish trend line on the daily chart and this line comes in today around 133.45 and is now proving to be the first resistance point. All of the majors are currently sitting around their NY closing levels. We first up had a mild sell-off in all the JPY crosses with EUR/JPY falling from 133.20 to its session low at 132.85 but the momentum has been lacking today and the pair recovered sharply. It has since spent the last 4 hours sitting around the same 133.20 level.
Markets: Nikkei +0.1%; HK +0.5%; Shanghai +0.1%; Kospi +0.4%. Gold $924/oz; oil $64.25/bbl.
Ranges: EUR/USD 1.3950/93; USD/JPY 95.12/45; EUR/JPY 132.85/133.40; AUD/USD .7945/79; cable 1.6240/95.