Monday, January 15, 2007

HOT NEWS - 15 JANUARY 2007 (local time)

15 Jan 07: 08:26(LDN) - FX NOW! EUR/USD, USD/JPY Flows - Stops done, Fujii latest to lean on BoJ

The specs finally managed to find the stops at 1.2950 on EUR/USD after failing on Friday on the back of Cable's run higher, thugh there were sellers ready when follow through proved very limited. All the more usual FX bank names are getting a mention now on the USD buy side, though right now they are having less than a massive impact on the JPY. There the debate on this week's BoJ decision continues apace, MoF's Fujii the latest to lean on the Bank to keep rates unchanged


15 Jan 07: 06:46(SGA) - FX NOW! AUD/USD, USD/CAD Flows : USD/CAD at day lows; focus on BoC likely no change tom (CB)

USD/CAD dipping to day lows of 1.1686, hearing good selling interest earlier from large Europeans names, above 1.1700 handle, with USD/CAD around recent 2-week lows, lowest since January 3 1.1635, though likely to see support and buy on dips interest at 1.1650-60, given recent weak commodities, while off lows, with weakness in Oil, Copper and Gold likely to weigh on CAD. Focus on tomorrow's BoC overnight rate announcement at 1400GMT, where BoE is seen keeping the rates unchanged at 4.25%, and any signals that BoC will cut rates in coming months. BoC Governor David Dodge seem comfortable with recent CAD falling, "not surprising" given lower commodities. Offers 1.1730-50, with focus still on topside

15 Jan 07: 06:11(SGA) - FX NOW! USD/JPY, EUR/JPY Flows : Econs Ota :Govt to decide whether to ask BoJ to delay hike

More on BoJ speculation before January 18 decision. Econs Minister Prof Hiroko Ota says Government will decide whether to ask for delay in any BoJ rate hike vote. Economy is at a critical time for overcoming deflation. Wants BOJ to support the economy through monetary policy. Sees no change in factors that determine monetary policy since the December meeting. BoJ and Government share view that consumption is weak. Oil prices and US economy remain risks to Japan economy. On FX, little impact on USD/JPY, EUR/JPY, having traded range of 120.07 to 120.47, and 155.08 to 155.65, coming under earlier waves of selling from Japanese custodian, agricultural, brokerages and before short-covering up.



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