TGIF and it Couldn't Come Soon Enough: AUD, EUR/USD

Your scribe is not only hungover from an over indulgence of adult beverages last night, but perhaps even more so from this complete and utter farce of a market.

It used to be that flashing numbers on a screen represented the market, sadly these days the market represents flashing poxy numbers. Circular logic? Don’t follow? Well, welcome to my world. The point is that crosses are genuinely moving without any logic to them and watching a screen these days is like playing pinball, however far less fun, satisfying or rewarding. We’ve all heard the news that Greece has arrived at some sort of agreement, what complete and utter nonsense. We also heard Super Mario tell the world that he has no problem running the biggest Ponzi scheme since Maddoff. And now we wait for the LTRO at the end of this month to see how much more money can be printed and invested in bonds that not even Mike Milken would’ve touched with a barge pole in his day.

The AUD fell out of bed, smalls overnight on the back of a softer (or at least perceived that way) MPS, and in stark contrast local Australian banks actually raised their variable retail rates overnight by around 6 basis points. Tail wagging the dog? Helping the slide lower in the currency was a raft of stops that clearly needed to be washed out, and... job done. On the day it still looks a little soft, but with nothing really moving across the board it’s hard to decipher.

The EUR/USD? Dead in the water and continues to hover around the 1.3250 level, and it aint going anywhere fast folks.

The Cable still looks bid, and for the time being still has its targets set on the 1.6000 handle. Only a daily/weekly close below the 1.5730 area could create some hesitation in this move.

Otherwise the JPY was an interesting little mover yesterday afternoon, as Asian names bought in size, looking for and getting breaks higher. Tacit intervention? Perhaps. If indeed that is the case, they clearly have a lot more to do, as the 80 handle in USD/JPY is the line in the sand for now.

Good luck out there today folks, if you’re even bothering, and as always I suggest you get your helmets on.