- EUR/USD and EUR/JPY slip lower on more negative Greek sentiment
- Reports that Germany wants higher interest rates on aid for Greece
- Concern grows that Greece will struggle to raise new aid
- At the same time, more Greek citizens and corporations are reportedly moving their cash off-shore
- Australian job ads still on the increase at +1.8%, although markedly lower than last months big rise
- RBA raises interest rate by 25bps to 4.25%
The EUR/USD closed in NY at 1.3495 but has slid lower on increasing bearish sentiment towards Greece and it’s debt situation. Firstly stops were triggered below 1.3450 and there has been little bounce since. Range: 1.3416/96
USD/JPY and EUR/JPY have also had one-way bearish sessions with USD/JPY breaking below the overnight low of 94.05 and EUR/JPY also enjoying one-way traffic. Ranges: 93.89/94.37, 126.12/127.35
Cable has also lost ground as EUR/GBP buyers ahead of strong technical support at .8800 ensured that the cable fell step for step along with the EUR. Ranges: 1.5229/1.5306, .8812/21
The AUD/USD opened at .9220 but was unable to break above the heavy offers which have been there for days. It slid lower on the general risk aversion sentiment and was sitting on its session lows at .9165 just before the RBA announcement. The pair subsequently bounced back above .9200 but trading remains subdued despite the increase in interest rates.
Markets: Nikkei -0.7%, Kospi -0.3%, Sydney +0.8%. Oil steady at $86.60/bbl and Gold at $1129/oz.