- G20 agrees to tackle deficits once global economic recovery is established
- Bank rules delayed to safeguard recovery
- China requests that all references to Yuan be omitted from final communique
- Japanese retail sales growth slows, -2% MoM still +2.8%, YoY
- UK economy: house price growth slows in June
- Compromise still likely on Australian mining tax; new Australian cabinet shows only minor changes
- Asian stockmarkets slightly lower overall
It has been a relatively quiet post G20 market with most pairs trading in 30 pip ranges.
EUR/USD tried to rally from its NY closing level around 1.2375 but the offers around 1.2400 have been stubborn. Initial rallies in the EUR crosses have wimpered out and the market seems unsure as to its next move. Ranges: EUR/USD 1.2369/97, EUR/CHF 1.3507/46
Cable has also been unable to generate any strong momentum despite the big jump in NY on Friday and the strong technical close. What happens in EUR/GBP at the .8150/75 level will have a big impact on the short term ditrection for cable. Ranges: 1.5033/71, EUR/GBP .8216/37
The AUD/USD has traded with a bullish feel for most of the session but interbank dealers have been unable to get at stops above .8780 despite getting very close on a few occasions. Ranges: .8722/76
USD/JPY has seen a quiet 89.28/44 range and did not react to the somewhat disappointing retail sales data. This pair has been unable to bounce in recent sessions and heavy stops are noted below 89.00.
Markets: Nikkei _0.35%, Kospi flat; Sydney -0.75%, HK +0.4%. Gold steady at $1258/oz, oil $78.60/bbl.