European Session: Orders and Options Watch

EUR: Although the single currency rallied to as high as 1.3184 on active buying by Middle East names, the currency pair ran into good offers there and has retreated in late New York, bids at 1.3135 and 1.3100 were absorbed but more buying interests from same parties are line up from 1.3070 down to 1.3030, option related bids in very good size are reported further out at 1.2990-00, 1.2950 and 1.2930 with stops building up below 1.2920-30. On the upside, some offers are noted at 1.3150 and selling interest remains in the region of 1.3180-1.3200 with stops in good size placed above 1.3200 and 1.3250 option barriers.

GBP: The British pound also retreated from yesterday’s high of 1.5735 in part due to the release of soft UK CBI data, however, bids are still noted at 1.5650-60 and further out at 1.5610-20 with some stops seen below 1.5600 but more decent demand is located at 1.5540-50 with bigger stops placed below 1.5530. On the upside, offers from U.S. big names are tipped from 1.5700 up to 1.5720 and also 1.5740-50 with some stops seen above 1.5750.

CHF: Despite falling to an 8-week low of 0.9157 yesterday, indicated bids for protection of 0.9150 stops limited dollar’s downside and price rebounded from there in New York session on short-covering, however, offers from various parties (including European names) are lined up from 0.9230 up to 0.9250 and also at 0.9280 by a German name. On the downside, bids from French and Swiss names are still noted at 0.9170 and 0.9150 with stops remain below 0.9150 and 0.9100, however, larger buy orders from same parties are expected at 0.9065-70.

JPY: The currency pair dropped this morning on stop-hunting, bids at 77.30-35 were filled and stops at 77.00 were also triggered, however, buying interest from Japanese investors is still seen at 76.90 with more stops placed below 76.80 but bigger buy orders are expected at 76.50-60 (for protection of 76.50 option barrier). On the upside, offers from exporters are lined up from 77.40 up to 77.80 with some stops seen above 78.00 and mixture of offers and stops remains at 78.30-40.