ForexLive Asian market wrap: IMF livens things up by saying that Yen moderately overvalued

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June 11, 2012 11:00 PM

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

No great surprise in comments that Yen is overvalued, but EUR/JPY jumped 40 pips on the comments from IMF
Japan May CGPI -0.5% YoY
Japan tertiary index -0.3% MoM
Australian May business conditions index -4
Professional market positioning at near record lows
UK economy: House price falls slowing down; jobs growth anaemic
Fed's Evans: Expects 2.5% GDP growth over next 18-24 months
Stockmarkets -1% on average
Gold $1594/oz; Oil $82/bbl

EUR/USD closed in NY near 1.2470 after a very soft session of one-way traffic. Early Asian trade saw EUR/JPY selling driving further south but EUR/USD finally ran into some decent bids near 1.2450 and started to bounce. The IMF comments encouraged more EUR/JPY short-covering and took EUR/USD to its session highs. Ranges: 1.2449/98; EUR/JPY 98.68/99.44

AUD/USD followed the EUR lead for much of the session, relying on AUD/JPY flows to generate some movement. Ranges: .9846/.9904.

USD/JPY sold off early on cross-JPY selling but very solid bids on the approach to 79.00 dissuaded the bears ands we've seen a sharp short-covering rally after the IMF comments. Ranges: 79.13/59

Cable 1.5454/59; EUR/GBP .8049/67; EUR/CHF 1.2010/11

Originally posted here.

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