JPY Weakness dominates the FX space

<p>The FX markets traded in tight ranges in Asia with the initial thoughts that risk sentiment is under pressure with political uncertainty in Japan and […]</p>

The FX markets traded in tight ranges in Asia with the initial thoughts that risk sentiment is under pressure with political uncertainty in Japan and tension in the middle east adding to recent worrying themes of the US fiscal cliff and the eurozone crisis.

Asian equities continued on from lower US indices with the Japanese government cutting its view of the economy for the fourth month in a row making the downgrade the long sequence in pessimism since the financial crisis in 2008-2009.

The latest theory in the Japanese political situation seems to show that the opposition Liberal Democratic Party are continuing to out-poll the ruling Democratic party for a landslide victory allowing Shinzo Abe to become Prime Minister for a second time although I have to say it’s a tough place to be a PM with seven new leaders in the past five years.

Today is relatively quiet in terms of data but we do get European current account/trade balance and US industrial production data with President Obama scheduled to meet the top leaders of congress for the first formal fiscal cliff negotiations.

 


EUR/USD

Supports 1.2720-1.2660-1.2575 | Resistance 1.2820-1.2875-1.2950


USD/JPY

Supports 80.80-80.30-79.80 | Resistance 81.50-82.00-83.80


GBP/USD

Supports 1.5820-1.5730-1.5610 | Resistance 1.5900-1.5960-1.6000

 

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