- More verbal intervention fron FinMin Noda has had no effect on the market
- Nikkei falls by over 2.0%
- Yield on benchmark 10-year JGBs falls below 1%, futures prices at new 7-year highs
- Australian balance goods/services at record surplus
- UK jobs growth slows
- UK shop price inflation steady
- Hung parliament in Australia an increasing possibility
It’s been all about USD/JPY today with most of the other major pairings trading around their NY closing levels.
Increasing demand for JGBs would also seem to be fuelling JPY demand and USD/JPY has fallen steadily through the session. Some verbal intervention from FinMin Noda helped push the pair from its opening level at 85.75 to a session high at 85.93 but it’s been downhill from there. With no sign of actual intervention emerging, it’s been a case of stops being triggered, consolidation, then more stops on the gradual grind lower. 84.80 is the next big level to watch. Ranges: 85.33/93
The AUD/USD fell in early trade as the falling Nikkei encouraged AUD/JPY selling. This was reversed after the exceptionally strong trade data. Ranges: AUD/USD .9110/45; AUD/JPY 77.80/78.45.
EUR/USD has been exceptionally quiet with EUR/JPY selling being offset by negativity towards the USD. Range: 1.3213/39.
Cable has slid lower through the session mainly driven by GBP/JPY. Ranges: Cable 1.5928/67; EUR/GBP .8289/.8903.
Markets: Nikkei -2%, Kospi -0.6%, Shanghai -0.5%. Gold +$8 at $1196/oz. Oil $82.50/bbl.