A 25 point rebound in the S&P from a low of 1006.70 in Asia has brought the buyers back to the ‘risk’ trades – will it be reversal or continuum ?
- The bears were still out there early on and the parity seekers are in the news
- Greek Fin Min would have us believing he will be bearing gifts; but maybe it’s not all roses
- Swiss CPI was certainly not rosy and the CHF gave ground; Swiss FX Reserves drop after policy changes
- US Earnings Season expecting strong results
- UK OBR loses leader with Alan Budd’s resiganation, possibly question the viability of the Office
- EU Bailout fund not to be used solely for bank problems
- Treasuries Rise/Yields Down on Signs of Global Slowdown Increases Demand for Safety
- AgBank of China IPO massively oversubscibed by institutions, unofficial source claims
After a bearish Asian session the tide turned as risk-on sentiments came into play with reversals in the main contenders – AUD/USD, AUD/JPY and EUR/JPY.
EUR/USD broke through a couple of key resistence levels to meet sellers at 1.2600/05, namely Middle Eastern and Asian CBs. Range 1.2481/1.2607
EUR/JPY ranged 110.16/110.85 and kept USD/JPY bid just below today’s option strike at 88.00 – range 87.42/87.99
CABLE enjoyed a risk-on rally to a high of 1.5207 from a low of 1.5084
USD/CHF ranged 1.0563/1.0666 and EUR/CHF 1.3282/1.3391 both bouncing firmly off the lows after the disappointing CPI, well off expectation
AUD traded heavily early and reversed hard possibly aided by the fresh and lingering M&A news from yesterday – Range 83.18/84.98
The AUD is holding rather bouyant as I write this trading at the high of the day against USD (84.98) and the JPY (74.80), looking bid for now
Gold had a modest day in a quiet range, now trading at 1210.50 and Oil (Brent Crude – August ) trades at 72.50 up $1.30
Main European stock markets are an average of 100 points up on the day.