Market Rumours

EURJPY off lows, recovering a tad after Japan exporters "actively sold" pair on initial rise to 138.29; which was new 2-month high of 138.36 says Resona Bank
EURUSD - Safe-haven USD may gain vs EUR, if nikkei slumps, following Friday's DJIA. EURUSD also biased down as "profit-taking could be executed since the euro remains above (the key psychological) $1.5 level.
USDJPY may find support from any strong USD-buying flows, but likely to "remain top-heavy" due to sell-orders placed by short-term players.

EUR/USD was stronger after an overnight report in a People's Bank of China-affiliated newspaper suggested China should diversify its reserves away from USD and into EUR and JPY. Stronger Asian stocks also boosted risk appetite, further denting USD. EUR/USD was at 1.5036, from 1.4998 late Fri, according to EBS via CQG. USD/JPY was at 91.74 from 92.07, while EUR/JPY was at 137.97 from 138.04. GBP/USD was at 1.6344 from 1.6310. USD/CHF was at 1.0094 from 1.0059.


Overall DJIA tends to go low as star player Apple faces the possibility of having to pay Nokia up to $1 billion for the technologies used in iPhones sold so far if it loses a lawsuit brought by Nokia, analysts said.

Billionaire Philip Green, owner of the Topshop-to-Bhs retail group Arcadia, said the stock market had rebounded too far too soon and predicted 2010 would be another difficult year for the sector. "I think the (stock) markets are way ahead of events. I think it's going to be hard work ahead, a long slog," he said ahead of the release of Arcadia's full-year results on Thursday.The FTSE 100 index .FTSE has surged about 52 percent from a six-year trough in March.