Boys from Basle having another humdinger of a day. Sold AUD/USD 1.0720+. We’re down at 1.0675. Sold EUR/USD 1.3280+.  We’re down at 1.3253 I’m impressed, they’ve been quite a useful indicator of late.  At least for short-term moves, anyways.

Just broken down through support at 1.0680 to a day’s low of 1.0671. There’s talk of stops building on a break of 1.0625 and some tech support ahead of them at  1.0645/50. One of my Ozz bank  contacts in London tells me there are bids all the way down to the stops  in varying sizes.

Out of an expected Eur 1.5-2.5 bln Sold Eur 1.7364 bln of May 18 Letra, yield 0.396 % (from 1.285%), cover 4 (vs 4.32) Sold Eur 0.764 bln of Aug 24 Letra, yield 0.779% (from 1.847%), cover 10.2 (vs 6.87) Full take up, improved yields, and stronger cover on the 6mths. All in all a good auction, but market [...]

Good man

–Jan PSNB-X -Stg7.75 bn vs -Stg5.204 bn in Jan 2011 LONDON (MNI) – Public Sector Net Borrowing posted the highest surplus since January 2008, and along with revisions to previous data, suggest borrowing is on track to undershoot the most recent forecasts from the Office for Budget Responsibility. PSNB-X showed a surplus of Stg7.75 billion [...]

UK DATA: Jan CGNCR -Stg16.293 bn vs -Stg15.464 bn in Jan 2011 ———————————————————————— Further analysis of the Public Finances data showed the CGNCR in surplus to the tune of Stg16.293 billion in January, up from Stg15.464 billion in the same month a year earlier. The CGNCR is the key driver of gilt issuance and the [...]

UK DATA: Jan PSNB-X -Stg7.75 bn vs -Stg5.204 bn in Jan 2011 ———————————————————————— PSNB showded the highest surplus since January 2008, and along with revisions to previous data, suggest borrowing is on track to undershoot the latest forecasts from the OBR. PSNB-X showed a surplus of Stg7.75 billion in January, up from a surplus of [...]

Seems to be a lot of interest in this one  at the moment. We’ve just tapped out a high of 1.2402 just now and  AUD  does appear to be lagging in the crosses on a broader picture since the Greek debt deal announcement. I’m guessing some of you may already be long of this from [...]

No specific level mentioned, but would guess 1.3280+. We’re at 1.3275. Talk of 1.3300 barrier option interest. Sell orders seen clustered 1.3290 to 1.3310. Buy stops through 1.3310 and 1.3325.

Morgan Stanley has just issued a trade recommendation . They’re going long of USD’s at 0.9090 with a target of 0.9590 and a stop of 0.8990. Rationality behind it is  that SNB will continue to fight price pressures and  defend the 1.2000 EUR/CHF floor. USD’s sitting at 0.9093 just now with the cross at 1.2075

MADRID (MNI) – European Central Bank Governing Council member Miguel Ordonez called on authorities and economic agents Tuesday to assume the implications of sharing a single monetary policy, underscoring the need for sound public finances and flexibility. “You cannot overcome the crisis without strengthening European governance supplemented by a thorough review of national policies conform [...]

Reuters’ reporting. EUR/USD up to 1.3272, effectively unchanged on the day (well from when I parked my bum)  

Spain to re-open 3-month Letra maturing May 18 and 6 month maturing August 24 Indicative size is 1.5-2.5 bln. (expected to go well) Results due around 09:40 GMT EFSF planning to issue up to 2.0 bln of a new 6-month bill maturing August 23 Results due around 11:10 GMT.

Revised forecast upward from previous 77.00.  Yipeeeee. UBS currency strategist favors USD among G3 currencies.  Sees recession likely in Europe.

Sources note Chinese buying circa 1.0705 in AUD/USD.  We’re at 1.0710 at writing. Unfortunately for the aussie bulls, the Chinese buying doesn’t seem to include the Giant Panda.

In recent trade.  We’re at 1.3248 from recent low in 1.3230′s.

Above 1.0720 apparently. We’re slightly lower at 1.0712.

Greek deal balance between soldarity and discipline

Using my finely-honed analytical skills I guess that means USD/JPY weakness. Could again test 75.00 when effect of easing wears off (personally I hope they’re totally wrong) Japan to return to trade surplus in 2012, supporting yen Potential oil price rise poses greatest risk to Asian currencies in 2012

BRUSSELS (MNI) – Eurozone finance ministers moved to prevent an impending Greek default early Tuesday by agreeing to an E130 billion bailout package for Athens that included a larger contribution by private-sector creditors. The deal, reached after 13 hours of talks, also included greater contributions by the public sector in the form of lower interest [...]