- G7 fails to end Greece concern
- Prius recall and Toyota apology helps share price to steady
- Australian government withdrawing bank guarantee scheme
- NZ home prices continue to rise
- Regional sharemarkets fall by 0.5% on average
- Commodity prices rally by around 2% after big falls last week
The first move of the week was up for the majors and the JPY crosses as the market interpreted the G7 statements regarding Greece to be moderately positive. EUR/USD rallied to a session high at 1.3715 in the interbank market. This mild positivity soon evaporated and EUR/JPY profit taking above 122.50 was heavy enough to put a cap on any further rallies. Ranges: EUR/USD 1.3622/1.3715, EUR/JPY 121.55/122.50.
Sterling has been under mild pressure throughout the day amid further negative reports on the state of UK finances. EUR/GBP made new short term highs at .8770 before falling back to the NY closing level at .8740. Cable found lots of willing sellers above 1.5650 this morning. Range: 1.5582/1.5652.
The AUD was expected to suffer moderately after the change to the government guarantee scheme but technical accounts have appeared as willing buyers after chart support and the 200-day MA around the .8570/75 level held firm on Friday night. Range: .8643/.8720.
USD/JPY has again been pushed around by the crosses in an 89.15/55 range.
Markets: Nikkei -0.5%, Kospi -0.8%, Shanghai -0.3%, HK -0.3%. Gold +1.25% at $1065/oz.