- Japan’s Q2 GDP numbers revised higher to +1.5% annualised
- BoJ monetary policy meeting minutes show that Yen strength was a major topic
- BoJ regulator orders small Japanese bank to halt operations
- China’s trade balance falls after sharp rise in imports
- Some speculation that China may raise rates over the weekend
- UK house prices +0.2% MoM
- Nikkei rises by 2% at one stage after good GDP data
It has been an interesting session led by USD/CHF and USD/JPY, with both pairs making strong moves higher before consolidating.
USD/JPY opened at 83.85 and traded quietly until the release of the GDP numbers. This led to a move higher on the Nikkei which in turn encouraged the risk trades in the FX market. The JPY crosses have been fairly stable with most of the moves happening against the USD. Ranges: USD/JPY 83.83/84.28, EUR/JPY 106.39/79
USD/CHF triggered some quite heavy stops above 1.0170 shortly after the Tokyo open and it traded quickly higher to 1.0225 before it ran into some heavy offers. The market is talking now about very heavy trailing stops above 1.0275. Ranges: USD/CHF 1.0145/1.0225, EUR/CHF 1.2872/1.2946
EUR/USD traded quietly around 1.2670 until the USD/CHF broke higher. This encouraged dealers to target well chronicled stops below 1.2655. Ranges: EUR/USD 1.2645/99
The AUD/USD has also eventually succumbed to the improving sentiment in the USD. Range: .9206/39
Sterling has been quiet, following leads in the other currencies but without conviction. Cable 1.5393/1.5431, EUR/GBP .8215/31.
Markets: Nikkei +1.5%, Shanghai -0.6%, HK -0.25%. Gold -$4 at $1246/oz.