Japanese Intervention.

Whoa! Did everyone see the Japanese intervention yesterday morning?! So apparently the Japanese sold a total value of over 2 trillion yen! This pushed the USD/JPY all the way up to 85.78. But it does seem like the yen is being tested, as it seems to pushing back down. Look out for the yen! There looks to be a barrier holding up at 86.00.

As for the AUDUSD, looks like there is a barrier at 0.9475 and I do hear of some bids at 0.9330 and stops below.

EURUSD seems to have some bids at 1.2950 and stops below and offers at 1.3030 with stops above.

So we got some not so good data out of the U.S yesterday, with the empire state manufacturing survey coming in below expectation and the industrial production as well. We will have to see how today data is turns up and whether risk aversion seems likely on the horizon

We saw the Cable bull its way up yesterday, even though there has been negative data coming out of the UK. What’s going on? There was a hint by King as well, that rates may have to be raised at the next meeting. Let’s see what happens today!

Data Today:

UK retail sales – 8.30am GMT

US initial jobless claims – 12.30pm GMT

US TIC flows – 1pm GMT