FX Views
EURUSD
Continued talk of higher rates for Europe keeps EUR bid after the intervention calmed investors fears of a financial melt down.
Major central banks intervened to sell JPY to the tune of 2 trillion by just the BoJ alone.
With this fear taken out, looks like risk is back on e table hence we see USDJPY, EURUSD and AUDUSD back where we started early last week.
EUR may probably see a test of 1.43 or higher if this continues.
AUDUSD
Should benefit from the improved risk appetite and a tech at 1,0150 cannot be ruled out this week or possibly 1.0250 even.
USDJPY
Look at the liquidity injection from intervention and the promise to pump more liquidity into the Japanese money markets as a Quantitative Easing for Japan and it should drag JPY lower just as it did the ISD since Aug 2010. Possibly see USDJPY test 83 or even higher in the coming weeks.