Introduction
The Nikkei 225 index followed suit after stock indices fell across the board, driven by a decline in European banking equities with heightened talk of the problems in Greece REARING once again. WTI crude oil futures are trading heavily at around the US$30 mark amidst relatively low liquidity and nervous times.
Asian Session
EUR/USD has traded above 1.1200 overnight with the risk-off sentiment driving USD/JPY to a low of 114.21. It also comes as no surprise that gold and CHF were paid up as the scurry for safe-haven assets took place.
In Australia, business confidence data proved largely in line with expectations. Antipodean currencies trade lower against USD with CAD following suit too.
The British Retail Consortium printed a positive retail sales figure overnight. Cable trades right now above the 1.4400 level whilst the US dollar index stands close top lows so far for the year at 96.73.
The day ahead in Europe and NY
A lack of real data and liquidity will inevitably lead to market attitude being the main driving force today. In Switzerland, unemployment data has already been released and proved in line with expectations. Industrial production data and trade balance figures for Germany have recently been published too and pulled EUR lower.
Trade balance info. will print out of London at 09:30 GMT today. EUR/GBP reached a high for the year of .7757 today. Later in the states, a string of data containing only tepid importance will take be released. The weekly crude oil stock data will be a focus when released at 21:30 GMT today.
Spot
| Last | % since US Close | High | Low | |
| EURUSD | 1.1182 | -0.10% | 1.1238 | 1.1178 |
| USDJPY | 115.34 | -0.43% | 115.85 | 114.21 |
| GBPUSD | 1.4459 | 0.19% | 1.4462 | 1.4391 |
| AUDUSD | 0.7061 | -0.37% | 0.7088 | 0.7019 |
| NZDUSD | 0.6619 | -0.12% | 0.6629 | 0.6576 |
| EURCHF | 1.102 | 0.25% | 1.1056 | 1.1011 |
| USDCAD | 1.3908 | 0.14% | 1.3961 | 1.3892 |
| USDCNH | 6.5766 | 0.06% | 6.5825 | 6.5699 |
FXO
Volatility is higher than may be expected when a look at certain major currencies such as EUR/USD is taken. The one month straddle trades at a volatility of 11.3% which is a high for volatility in this space for the year so far.
Low liquidity is leading curves to move quite dramatically in the currency options space. The USD/JPY one month 25-delta risk re3versalhas moved from a volatility differential of 1.5% to close to 3.0% today, favouring the downside.
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