OPENING COMMENT
Not a lot to talk about overnight with the buck under some pressure against most currencies with the exception of the Yen, which was sold off on comments from a Japanise FinMin that intervention was possible under extreme circumstances. Also seen weighing on the Yen were comments from Gyouten that Japan should support the USD as the world’s reserve currency. Meanwhile, the Euro was fairly stable only gaining marginally despite some broader currency gains, with comments from ECB Trichet that it is important to have a strong USD seen weighing. Elsewhere, in Australia, Treasurer Swan was on the wires with some downbeat comments after saying that the economy and budget still faced significant challenges. Overnight data in Japan was more or less as expected and failed to materially factor into the price action. Looking ahead, the European calendar is quite busy with the Swiss UBS consumption indicator due at 5:00GMT, followed by UK GDP, current account, and mortgage approvals at 8:30GMT. European confidence surveys are released at 9:00GMT, and then back to the UK for CBI distributive trades at 10:00GMT. Global equities are tracking higher, while US equities point to a marginally firmer open. Commodities trade relatively flat.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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