London Session - July 27, 2009 6:28 AM

Following the trend that developed in the Asian afternoon EUR/USD pushed higher into the London open before finding sellers ahead of the 1.4270 area, still within its established range. Further gains in stock markets both in Asia and Europe were the chief driver behind the improvement in risk appetite. On the back of the move in stocks, the yen is weaker across the board, AUD and the CAD are edging towards their June highs vs the USD, and even cable is pushing higher despite a report in The Times that UK banks could face more losses as a result of exposure to commercial property loans.
While the strong performance of earnings reports so far has underpinned risk appetite we remain concerned that the cost cutting that has enabled this will continue to take its toll on unemployment and consumption going forward.Full text »