- Once again repatriation flows at Tokyo fix were the only highlight of a quiet session
- Reuters Tankan survey suggests increased optimism among Japanese corporates
- Increasing disquiet over European austerity measures
- Regional stockmarkets flat on the session
Once again there has been very little to report from a quiet Asian session. Some JPY-buying flows around the time of the Tokyo fixing saw the JPY crosses dip but the volumes were not large enough to cause any lingering effect and most currency pairs will end the session close to where they started.
USD/JPY opened around 90.40, fell to 90.15 when the JPY buying was at its strongest, but has since recovered most of these small losses. Corporate sell orders at 91.10/20 are still live but much of the selling has already been done and the pressure should ease by mid next week. Ranges: USD/JPY 90.15/45, EUR/JPY 123.66/124.28.
The AUD/USD had hoped for a more exciting day after a bullish close in NY above it’s recent consolidation range but the follow through has been negligible here today. Range: .9210/42.
Cable slipped from its NY closing level at 1.5320 when some GBP/JPY flows hit the market but it has managed to claw back most of those losses. There have been no major sterling-related announcements and order books are light 100 pips either side of the market. Ranges: Cable 1.5290/1.5324, EUR/GBP .8957/73
The EUR has again been quiet in Asia despite increasing reports of major differences of opinion between the EU partners. It looks a bit like Germany versus the rest. EUR/USD range 1.3713/42.
Markets: Nikkei -0.25%, Kospi -0.1%, HK +0.1%. Gold steady at $1123/oz.