Forex News USD/JPY lower at 106.24 as Merrill Lynch's deeper-than-expected losses fueled risk aversion; adding to that, Moody's cut debt ratings on Merrill Lynch, Lehman Brothers, after-hours disappointments from key U.S. companies; several big techs (Google, Microsoft, Advanced Micro Devices) have fallen on their results/outlook. JPY also supported by slightly more hawkish-than-expected comments from BOJ's Shirakawa; says bank is "putting equal weighting on economy and price risks"; adds, "we are carefully watching both.
The balance is 50-50." GBP/USD lower, possibly in reaction to Financial Times story that U.K. Treasury officials want to revise PM Brown's rules on spending and borrowing; pair at 1.9978. EUR/USD tad higher at 1.5850; ECB Trichet interview last Friday published in Irish Times reiterated his commitment to controlling inflation even as eurozone economic growth turns "weak" and risks are skewed to downside. USD/KRW weighed by suspected USD-sales by FX authorities, say traders, pair last 1012.90.
Asian stocks have broadly positive tone early on Wall Street gains, but mood turned somewhat sour as day progressed; Nikkei closed down 0.7%, HSI down 0.4%, Kospi down 1.0%, STI down 1.0%. Sensex +0.3%, NZX-50 +1.0%. BOJ's June 12-13 meeting minutes show some policy board members stressing need to pay closer attention to downside risks to economy, while some noting upside risks to prices; underscore dilemma faced by global monetary policy makers. Aussie export prices surge in 2Q from 1Q following increases in coal, iron ore contract prices; export price index +13.5% in 2Q from 1Q, import price index +1.4%.
0 comments:
Post a Comment