- Rumours about a possible lower limit for EUR/CHF continue to gather momentum
- Statements expected from SNB later today
- China NDRC: Global economic recovery losing momentum
- Australia Q2 wage price index +0.9% QoQ, as expected
- Japan June average wages revised -0.7% YoY
- Nikkei -1%; HK and Sydney +1%
- Gold $1788/oz, Oil $86.80/bbl
Fairly quiet again in Asia with some mild risk aversion on the Tokyo open which has been more or less unwound as the session progressed.
EUR/JPY was the first mover as Tokyo reacted to the lack of developments from the Merkel-Sarkozy meeting as well as to a lower open in the Nikkei. The cross fell from 110.60 to 110.20 and EUR/USD fell from 1.4400 to 1.4355 but neither move could sustain any momentum. Ranges: EUR/USD 1.4351/1.4405, EUR/JPY 110.12/64
EUR/CHF fell also in early Tokyo trade but major players continue to buy dips in anticipation of an announcement by the SNB regarding a lower limit for EUR/CHF. Rumours are suggesting that this base might be at 1.2000. If no announcement is forthcoming, we can expect a sell-off in EUR/CHF from these speculative longs. Range: 1.1394/1.1487
AUD/USD remains capped near 1.0500, encouraging day-traders to try the short side throughout the morning, but again momentum was lacking and we’ve had a gradual rebound through the session. Ranges: 1.0429/85
USD/JPY drifted very slowly lower in a tight 20 pip range but with corporate orders either side of a 76.50/77.00 range, we may be stuck for another few days in this tight range trading mode.
Cable 1.6410/51, EUR/GBP .8737/61