Forex Market Alerts

Forex - USD/JPY, EUR/USD Flows: Cross/JPY to fall on risk aversion after Moody's Italy downgrade

Fri, Jul 13 2012, 01:36 GMT
by FXMarketAlerts Team | FXMarketAlerts

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USD/JPY, EUR/USD Flows: Cross/JPY to fall on risk aversion after Moody's Italy downgrade (RURC4901)

USD/JPY, Cross/JPY vulnerable to fresh selling and risk aversion, after Moody's downgrade Italy by 2 notches and warned of more downgrade. EUR/USD at 1.2188-90 from 1.2208-10, EUR/JPY lower at 96.63-65 from 96.80-83 - with the reaction still relatively stable - possibly thinner markets - await Asia markets open. USD/JPY at 79.30-33, after range of 79.18 to 79.97 yesterday. Markets caught long in Asia after buying to 79.97 from 79.50 on knee-jerk reaction to BoJ decision yesterday - to news that BOJ will up by Y5trillion short-term securities buying. Though good to note the increase is due to a shift down in fixed market operation from Y30trillion to Y25trillion - so total size of BoJ asset buying, lending programme remains unchanged at Y70trillion.

USD/JPY offers at 79.50-60, from Japanese exporters, mega-city banks and real money. Still good bids at 79.00-20 - talks of semi-official, Kampo, Japanese custodian, agricultural and regional banks buying. But huge stoploss below 78.95-00. USD/JPY, Cross/JPY vulnerable to more downside after Italy downgrade and ahead of China Q2 GDP data - downside risks. EUR/JPY at 96.65-70, AUD/JPY 80.35-40, NZD/JPY 62.65-70. GBP/JPY 122.30-35. WL

Published On Fri, Jul 13 2012, 01:39 GMT Previous entries

Published with a minimum of 10 minutes delay.

FXMarketAlerts Team

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