ForexLive Asian market wrap: EUR recovery continues as market mood improves

Chinese Premier says focus must be on growth German press: Schaeuble still sees chance of Greece staying in EMU Nothing new in G8 statement, affirm that Greece should stay in EMU UK home prices stay unchanged BOE Cohrs: UK banks strong enough to withstand Greek EZ exit Thai GDP better than expected at +0.3% YoY Stockmarkets recover some ground, with Korea +0.8%, China, Japan and Australia +0.25% but HK falling again, -0.4% Gold $1595/oz; Oil $92/bbl The EUR recovery which started on Friday has continued during Asia, with the single currency making new short-term highs against the USD and the GBP. CFTC and interbank positioning show that the EUR market was getting overly short, and this relief rally is being caused by short-covering rather than any improved news. The statements from Premier Wen regarding growth and from the BOE adviser, re UK banks, both helped risk sentiment. EUR/USD closed last week near 1.2770 and spent the early interbank session trading between 1.2750/80. Tokyo opened with a short-covering rally and after topping out near 1.2810, its been fairly quiet since. Ranges: 1.2747/1.2812 USD/JPY has been very quiet in a tight range, 79.08/22. AUD/USD did move around a bit early with flows in the crosses, (primarily EUR/AUD buying after a strong technhical open to the week), but it has also settled down into a very quiet session. Hedge funds continue to sell the AUD especially on the crosses but sentiment did improve somewhat today. Ranges: .9797/.9876 Cable 1.5791/1.5838, EUR/CHF 1.2008/13