Markets in Asia on risk aversion mood again, after calm North America markets with US away for Memorial Day. Concerns over spike in Spanish bonds to 6.50%, and fresh challenge from Greece anti-austerity Syriza party, continue to weigh on sentiment as various government make contingency plans over Greece exit from euro.
US indices ended a touch lower on Friday. The capital goods, transportation and insurance sectors were under pressure. The S&P 500 (1317.82) remains below its 20d moving average (1347.5 - downward slope) and 50d moving average (1374.8 - downward slope). Wall Street was closed Monday for Memorial Day.
EUR/USD - After a solid bid seen in Asian trading, offers from a broad base of sovereign reserve managers starting at 1.2620 stopped any thought of a low volume rally, in the end falling equities sent EUR/USD lower into early close.
USD/JPY - Exporters have made sure the market is aware of their offers as 80.00 comes into play and officials have made it clear there is little room on the downside.
EUR/GBP, GBP/USD - Sovereign reserve managers sold GBP/USD along with EUR/USD in early trading, but given the minimal volume on to start the week, there has been nothing in the way of price discovery, Tuesday will be different.