http://seekingalpha.com/article/147668-is-the-floor-caving-under-usd-jpy The 95 price level for USD/JPY has served as very strong support over the past few months and now that the currency pair is trading well below that price level, it appears that the floor is caving in.
http://www.ibtimes.com/articles/20090708/jpy-advances-on-safe-haven-gains.htm JPY Advances on Safe Haven Gains
4cast - FX NOW! USD/JPY, EUR/JPY Flows - JPY surges across the board through stops
Wednesday, July 08, 2009 11:35:00 AM
* 08 Jul 09: 15:35 GMT (NYC) - FX NOW! USD/JPY, EUR/JPY Flows - JPY surges across the board through stops
After the London fixing JPY has surged across the board with what started as a decline in the S&P futures the sent the rate through stops at 93.90 and through even more on the way down to 92.76. The move looks rather painful for the TFX investors who are short JPY. SI
* 08 Jul 09: 15:10 GMT (LDN) - FX NOW! EUR/USD, USD/JPY Flows - EUR sold off at fixing, JPY rallies as equities slide
EUR suffered more than most at the regular 16:00 bst fixing today. Activity has been at a very low level during the entire session and the downtick on EUR/USD and USD/JPY at the fixing is likely to reflect minimal order imbalances. While the EUR was for sale at the fixing, the decline in equities that came at about the same time helped JPY climb, sending USD/JPY down through the 94.00 level, setting off stops at 93.90 and touching lows of 93.75. M.B.
* 08 Jul 09: 14:44 GMT (LDN) - COMMODITIES NOW! OIL Flows - EIA data was mixed, but crude price were already under pressure
Crude inventories dipped and gasoline stocks climbed. The news did little to interrupt the price action in crude oil futures that have been on the way down. Pressure has been exerted by the USD's advance, the weaker prospects for growth implied by the equity market decline and the ongoing G8 and CFTC rhetoric regarding speculative crude oil trading and position limits.
* 08 Jul 09: 14:42 GMT (NYC) - FX NOW! USD/CAD, EUR/CAD Flows - Modest bounce after EIA inventory data
USD/CAD has seen good two-way interest so far in the session, but offers took over in the N.Am morning to push USD/CAD below 1.1600 to lows of 1.1589. However, buyers have found a decent opportunity to retrace losses after the release of EIA inventory data showing a slightly higher than expected draw in crude stocks of 2.9mn barrels (2.4 mn expected) being offset by a larger than expected rise in gasoline inventories (+1.9mn vs 0.6mn expected) and distillates during the key driving season. USD/CAD has bounced through 1.1620 in reaction to a drop in crude futures and equities, but the high of 1.1682 is still a stretch. SI
* 08 Jul 09: 14:24 GMT (LDN) - FX NOW! GBP/USD, EUR/GBP Flows - GBP trading is tentative in advance of Thurs BoE release
GBP trading has lacked its usual price swings that tend to keep speculators busy and dealers attentive. In advance of the close of the BoE meeting on Thursday, with the bank expected to leave official rates unchanged at 0.50%, the only excitement that may be generated in the wake of the meeting is the potential announcement that the BoE's QE program would be expanded from the current total of GBP125 bln up to GBP150 bln. A more aggressive QE program is likely to soften GBP and it seems obvious now that the market is not interested in doing anything until the bank announces its intentions. M.B.
DOTS TO CONNECT:
- G8 Meeting http://www.reuters.com/article/usDollarRpt/idUSL129307120090701
China requests reserve currency debate at G8 -sources
- USD collapses against JPY http://www.ibtimes.com/articles/20090708/jpy-advances-on-safe-haven-gains.htm
http://www.bloomberg.com/apps/news?pid=20601109&sid=aqA9QhRSNeqM
Yuan Deposes Dollar on China Border in Sign of Future (Update1)
