1) Overnight Asia Wrap
Euro opened in Asia at 1.3930 after highs of 1.3957 in NY, remaining buoyed by optimism of a comprehensive EU package and risk rallies in the equity and oil markets following yesterday’s strong Chinese PMI and US earnings data. Comments from Fitch that a Greek default was inevitable weighed on early sentiment in Asia with the pair slipping to 1.3899 before a bounce to 1.3927. Easing stocks then led a further fall to 1.3891 before recovering again to 1.3923. GBPUSD was steady in a 1.5975-1.6010 range with EURGBP easing to 0.8691 from early highs of 0.8711 ahead of UK c/a and mortgage data at 0830GMT and BOE king’s speech at 0845GMT. Early risk off sentiment helped USDJPY up to 76.24 from opening lows of 76.06, but the pair returned there later in the session despite usual threats from Japan’sFin and Econ Ministers. Aussie slipped from early highs of 1.0477 to 1.0446 but lower USD/CNY fix and firming non-Japanese bourses assisted a bounce to 1.0489. A lean morning in Europe for data with German GFK consumer confidence at 0600GMT following by the UK data at 0830GMT
2) Orderbook & Flow
EURUSD topside stop 1.4100-50 with bids below collecting around the 1.3850 handle.
USDJPY bids below at the 75.00 handle. Topside offers 77.40-60.
AUDUSD offers above 1.0520.
USDCAD topside offers 1.0250.
Flows overnight were relatively light
3) USD/Asia Run
USDKRW 1128.5 (Monday Open 1137.5)
USDINR 49.95 (50.18)
USDPHP 43.15 (43.32)
USDCNY1y 6.3910 (6.4025)
USDIDR 8885 (8925)
USDMYR 3.1310 (3.1365)
USDTWD 30.10 (30.09)
USDSGD 1.2620 (1.2705)
4) Opening Levels
EUR 1.3906
GBP 1.5984
JPY 76.09
CHF 0.8803
WTI 92.0
Brent 111.5
XAU 1657.8
Silver 31.80
X-Over 653
Portugal 1117
Ireland 776
Spain 376
Italy 447
UK 10y 2.41
Ger 10y 2.09
US 10y 2.22
Bund 134.77
Spain over bunds 342
Italy over bunds 384
BeBanks Index 76.35
3m Eur Xccy -93.0
HSBC Global Research