Opened in Asia at Y82.52 and after a brief push up to Y81.67 fell back on more general risk-off sentiment led by crosses following the 1st round French presidential elections at the weekend and a break down in austerity budget talks in Holland. PM Rutte called an emergency cabinet meeting as the Dutch AAA sovereign rating could now be under threat. Friday’s bolstering of the IMF’s war chest to $430mln had little impact and ECB Draghi’s reluctance to acknowledge calls for further EZ growth stimulus provided further negative tone. USD fell back on EUR/JPY sales through bids at Y81.40/50 to lows of Y81.26 before settling in the Y81.30’s. EUR/JPY fell to Y107.14 from Y107.80. AUD/JPY plunged on much softer than expected Australian PPI data through some Y84.00 stops to Y83.92 from Y84.74 before staging a small recovery on the back of a stronger HSBC Chinese Mfg PMI release to Y84.18. USD bids now sit from Y81.25 down to Y81.00 with stops just below and again through Y80.80. Offers start from Y81.65/80.
EasyForexNews Research Team