- Asian Sovereign entities continue to buy EUR/USD
- China’s CPI ‘leaked’ at 4.6%
- USD/CNY set at marginal new low, 6.5885
- HK and Shanghai +1%
- Gold $1373/oz
USD/JPY joined in the activity for the first session in weeks with a sharp 50 pip fall around midday setting the bearish USD-tone for the session. The JPY crosses, particularly GBP/JPY, joined in briefly but overall it was a day for selling dollars. Ranges: USD/JPY 82.13/69, EUR/JPY 110.36/74
EUR/USD initially traded quietly around its NY closing level at 1.3375 before talk that ACBs including China were buying initiated a sharp move higher. This move has topped out close to recent highs at 1.3460 but the pullback has been negligible. Ranges: EUR/USD 1.3367/1.3459, EUR/CHF 1.2894/1.2923
AUD/USD also moved sharply higher once the market got wind of the fact that the big sell orders at 1.0020 weren’t as big as anticipated and also that stops were building above 1.0030. Once the USD selling began in earnest, these stops were targeted and triggered. Ranges: .9964/1.0038
Cable has lagged the move higher in the other USD pairs, as GBP/JPY selling and EUR/GBP buying weighed on the pound. Ranges: EUR/GBP .8378/.8403, Cable 1.5953/1.6018