Friday, 10 July 2009 08:11:39 GMT
EUR-USD traded defensively after losing its hold above 1.4000 in Asia. It started the European session at 1.3960 and traded in to 1.3905 lows as European interbank names favored short positions on negative European news. The focus was on Eastern European credit concerns noted in the Handesblatt that said at least 10 states are negotiating with the IMF for credit. European indices headed lower in line with easier S&P futures and this also encouraged EUR-JPY offers and it fell from 130.00 to 128.74 lows. There was some disappointment that the Japanese investment trust launch overnight only saw a 10% take up, which dampened expectations of heavy Japanese investment overseas. EUR-JPY has scope for further weakness if equities sustain softer levels, while EUR-USD could retest support in to the mid-1.38s if stop losses are triggered below 1.3870.
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