- Singapore tightens policy, allowing SGD to rise to record levels against USD
- Singapore GDP +8.5%, inflation rising
- BRICS statement again refers to reserve currency issues
- UK consumer confidence rises in March
- President Obama lays out plan for long-term debt reduction
- RBA Stevens: China and India economic growth is transformative event
- Gold and Oil rise 0.3% to $1459/oz and $107.40/bbl respectively
- Regional bourses -0.4% on average
It was a very quiet session for the first 3 hours until the MAS revealed its expected policy change. EUR/USD and AUD/USD both fell after the announcement, with the logic being that the ACBs in general would need to buy less USD/Asia to support their currencies and therefore would nedd to diversify less into EUR and AUD.
EUR/USD fell to 1.4405 but the same names who were selling yesterday ahead of option levels were buying back near the lows. The bids just above 1.4400 were very heavy and soaked up some very heavy selling of EUR/JPY. EUR/USD and EUR/JPY have both jumped sharply in late trade with the intraday market caught short. Ranges: EUR/USD 1.4405/67, EUR/JPY 120.18/121.24, EUR/CHF 1.2912/53
USD/JPY fell early along with EUR/JPY and then tried to trigger well reported stops below 83.30. Unfortunately for the sellers, this level and the support level at 120.20 in EUR/JPY occured simultaneously and when they held, there was some furious short covering. Ranges: USD/JPY 83.25/96
AUD/USD followed the lead of the EUR/USD, only to a slightly lesser degree, falling early and then recovering. Ranges: 1.0455/1.0506
Cable was well supported after the promising consumer confidence data and EUR/GBP broke below the NY low but lacked momentum. Ranges: 1.6252/1.6302, EUR/GBP .8856/81
