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• USD/JPY heading to overnight lows at 100.60
• Asmussen sees no inflation pressure
• GBP/USD stalling into resistance at 1.5152
• USD/CHF additional orders
• Asmussen is not too hot on negative deposit rates
• European stock open 27 May
• ECB’s Asmussen forecasts decade of adjustment in Europe
• Swiss pairs taking a hit
• Breakfast riots avoided in the UK
• Option board 27 May
• Order board 27 May
• A quick look around the markets. It’s all go go go
• Cyprus finance minister Georgiades wants to keep living the European dream
• Banking Union has the ECB squaring up to Germany
• New Zealand PM Key: Indications from China it wants to achieve dollar, yuan convertibility quickly
• ForexLive Asia Wrap: Nikkei drops in morning Tokyo trade but JGBs and yen relatively stable
• UK and US markets closed for holidays Monday May 27
• Tokyo governor proposal to move standard time by 2 hours
• Japan’s chief cabinet secretary Suga on the wires: Says economy picking up
• Bank of Japan April 26 monetary policy meeting minutes – more detail

USD/JPY heading to overnight lows at 100.60 Posted: 27 May 2013 01:50 AM PDT The yen is getting bought up above 101 and now we’ve slid to 100.84 and are looking to try a sustained break of  the lower resistance line from the beginning of April.   That level comes in around the 100.85 mark. Upside moves have been capped by the 100 H4 ma in the 101.10 area and as we could not overcome that, down we came. Should we break lower then support comes in at 100.42 then 100.00/05.

Asmussen sees no inflation pressure Posted: 27 May 2013 01:08 AM PDT Expectations firmly anchored ECB would act on change of inflation expectations

GBP/USD stalling into resistance at 1.5152 Posted: 27 May 2013 01:01 AM PDT Some small offers are mooted at 1.5150 with more at 1.5186. In between we have the 55 H4 ma at 1.5176 We’ve broken out of the minor short term channel at 1.5117 and have slowly ground higher up to 1.5149. To the downside support is seen at 1.5100/05 then 1.5074

USD/CHF additional orders Posted: 27 May 2013 12:31 AM PDT Hearing of bids at 0.9580 and 0.9590 mixed with some small stops. Larger stops seen on a break of 0.9550 and 0.9520. further movement towards 0.9500 may bring out profit takers with larger stops at 0.9470 The 100 H4ma is just below the first line of orders and stops at 0.9560 with the 50 fib of the May lo/hi at 0.9541

Asmussen is not too hot on negative deposit rates Posted: 27 May 2013 12:15 AM PDT Says he’s less open to the idea of negative rates but the ECB is still having an “open discussion” on the subject. Sees signs of German economy doing better in Q2

European stock open 27 May Posted: 27 May 2013 12:06 AM PDT Dax +0.5% Cac +0.9% Ibex +0.6% FTSE Mib +0.7%

ECB’s Asmussen forecasts decade of adjustment in Europe Posted: 26 May 2013 11:58 PM PDT In proper European terms we’d better double that. Sees no crisis of the euro Spain making considerable progress Shouldn’t weaken stability pact Shouldn’t subtract state investment from deficit Jorg Asmussen is speaking in Germany and answering reports on the ECB softening of debt rules ECB doing what’s right for price stability Low interest rates can lead to new risks if they stay low too long

Swiss pairs taking a hit Posted: 26 May 2013 11:56 PM PDT EUR/CHF down 35 pips to 1.2413 USD/CHF breaks below 0.9600 to 0.9596 GBP/CHG down to 1.4517 from 1.4560 Got no reasons for the moment

Breakfast riots avoided in the UK Posted: 26 May 2013 11:22 PM PDT In greasy spoon cafes up and down the country. Apparently the UK came within 6 hours of running out of gas supplies in March according to the Crown estate, who manage Her Majesty’s property portfolio including natural gas storage caverns under the sea.  The longer than usual winter and processing problems in Norway led to supplies running low. I dread to think what would happen if half the country failed to get it’s morning fry up.

Option board 27 May Posted: 26 May 2013 11:03 PM PDT There’s a few going off today at the 14.00gmt New York cut. I’ll pop up the closest market options EUR/USD  1.2850 1.2920 1.2925 1.3010 USD/JPY 100.25 100.75 101 101.75

Order board 27 May Posted: 26 May 2013 10:55 PM PDT The board is a bit light in terms if information, as you can imagine but there are some bits and pieces still. EUR/USD Offers at 1.2960, 1.2980, 1.2990 1.3000 Bids 1.2910, 1.2900 and 1.2875/80 Stops through 1.2820/00 USD/JPY Offers at 101.20, 101.30 with small stops above Importer bids at 100.60 USD/CHF Bids 0.9600 stops through 0.9590 EUR/JPY Stops on a break of 129.90 EUR/GBP Bids at 0.8530 with stops on a break EUR/CHF Bids 1.2400 stops under

A quick look around the markets. It’s all go go go Posted: 26 May 2013 10:43 PM PDT GBP/USD is 1.5128 EUR/GBP 0.8545 EUR/USD at 1.2927 and within it’s 15 pip overnight range USD/JPY holding above 101 at 101.09 GBP/JPY held under 153 at 152.91 EUR/JPY at 130.67 AUD/USD is looking a bit soft but holding above 0.9600 at 0.9627 USD/CHF also kept it’s head above water at 0.9600 and is 0.9628 Nikkei is currently down 410 to 14200 -2.81%

Cyprus finance minister Georgiades wants to keep living the European dream Posted: 26 May 2013 10:26 PM PDT Speaking in an interview with France’s Le Figaro, he says that the negative spiral is set to continue and that an exit from the Euro would be catastrophic. The best course is to stay in the euro.

Banking Union has the ECB squaring up to Germany Posted: 26 May 2013 10:01 PM PDT Good morning everyone on what should be a really boring and quiet day (trying some reverse psychology here). I thought I’d kick the new week off with a good old bit of European infighting. Despite every ECB member and finance minister boring us silly for the last few weeks over getting the banking union up and running, the ECB and Germany have fallen out over part of it. They’ve managed to agree on everything except how to resolve failed banks. The ECB want the proposed SRA (single resolution authority) to deal with recapitalisation (via a new fund) or winding up but the Germans want it done at national level and via existing fiscal arrangements. Full rundown from the WSJ here, and it’s not gated.

New Zealand PM Key: Indications from China it wants to achieve dollar, yuan convertibility quickly Posted: 26 May 2013 09:26 PM PDT Comments from new Zealand PM John Key hitting the wires that China is seeking to achieve the New Zealand dollar / yuan convertibilty deal quickly. Weekend reports are here. And more from the New Zealand Herald here: NZ, China currency talks underway And Bloomberg

ForexLive Asia Wrap: Nikkei drops in morning Tokyo trade but JGBs and yen relatively stable Posted: 26 May 2013 08:44 PM PDT The forex trading headlines for Asia trading today, Monday May 27 ForexLive courtesy reminder: UK and US holidays today. If you're reading this from work now you know why the traffic was so light this morning. Bank of Japan Governor Kuroda spoke in Tokyo on Sunday, main points here, and further information here. Bank of Japan: The minutes of the April 26 monetary policy meeting were published today. there wasn't anything surprising on the minutes, though there are more details to be found here (including a link to the full text) China: April Industrial Profits YTD y/y +11.4% (vs. prior of +12.1%) UK: Hometrack Housing Survey; May house price +0.4% m/m (prior was +0.3%) China PM Li Keqiang says stable euro in best interests of China and world New Zealand and China are in the early stages of talks to make their currencies directly convertible According to Taiwanese press Taiwan may issue an economic stimulation plan this week It was an active start in the very early New Zealand market (around 1900GMT) with USD/JPY trading above 101.60 in the super-thin illiquid market of a New Zealand Monday morning. It fell back just as quickly, though, and settled 101.00/30 into early Tokyo. The Tokyo stock exchange opened lower for the session on the back of margin-call related selling, which saw USD/JPY test a little lower, although rather unconvincingly. It got as low as 100.75/80 before finding support around there again and spent the balance of the session around 101.00. JGBs ticked lower in yield on the day. EUR and GBP were both very quiet, but lost a little ground in 25 point ranges. AUD and NZD were more active, both falling to test their Friday New York lows. NZD/USD found support at 0.8060/65 and ticked back to 0.8082/87. AUD/USD traded down to 0.9615/20 before settling around 0.9630 as of writing. So, apart from the New Zealand dawn raid on the yen it was a relatively quiet day in the Asian timezone.

UK and US markets closed for holidays Monday May 27 Posted: 26 May 2013 08:04 PM PDT The UK and USA markets are closed on Monday, May 27. Liquidity will be drastically reduced in the foreign exchange markets. Ryan will be in during the UK hours to provide a reduced level of coverage, and Adam during US hours. On the day off, I suggest going fishing as a nice way to relax.

Tokyo governor proposal to move standard time by 2 hours Posted: 26 May 2013 07:18 PM PDT Inose Naoki, Governor of Tokyo, has proposed that Japan move their "standard time" ahead—by two hours! His reasoning is to position  Tokyo Financial Markets as being the first opening in the world each day, and so attract more financial institutions to Japan (look out Auckland and Sydney …). Seems rather extreme.

Japan’s chief cabinet secretary Suga on the wires: Says economy picking up Posted: 26 May 2013 07:15 PM PDT And he declines to comment on stock price movements Wants to implement policies to achieve sustainable growth Says stocks probably in an adjustment phase Based on what’s been (not) happening today, it safe to go back to sleep now.

Bank of Japan April 26 monetary policy meeting minutes – more detail Posted: 26 May 2013 06:54 PM PDT For those wanting to read up on the BOJ minutes, here are links to Reuters and Bloomberg articles. There hasn’t been a lot of directional movement since the release, just some chopping around, although the Nikkei has fallen and rebounded a little (5 minute chart below): I’m not sure the day has a lot of directional movement left in it, with the UK and USA out for holidays Monday. - Link to the full Minutes on the BOJ website (PDF)

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