Sunday 24 June 2012

Market update - 25 June 2012


Markets likely to remain range-bound ahead of the EU Summit against  the background of firmer risk appetite -EU leaders will meet at the 28-29 June EU summit


Singapore May CPI inflation to soften to 5.0% YoY; the first for the year and policies taken by MAS seems to be working to contain the rising  inflation


The 28-29 June EU summit is all about a radical change in method and a clear outcome. The usual process of hesitating until pushed to the brink and then finding a partial solution is no longer possible; simply because neither the rest of the world nor the markets are buying it.


AUDUSD  headed back towards parity from a high of 1.0220 and market is testing if it can hold the 1.0000 bar, data is light this week but a lot of major policy meetings, markets are likely to take the queue from central banks and policy announcements


USDMYR opened where it closed at 3.1900-3.1950 as we continue to expect the immediate range of 3.1400-3.2100, as headlines will drive the direction of the pair with little local data or news this week

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