European Session: Orders and Options Watch

EUR: Although the single currency rallied from yesterday's low of 1.3026 and triggered stops above 1.3200, offers are still noted from 1.3210 up to 1.3230 with more stops seen above 1.3235-40 and also 1.3250 option barrier. On the downside, bids from various parties are lined up from 1.3150 down to 1.3120 with some stops placed below 1.3095-00 and also 1.3070, followed by mixtures of bids and stops located further out at 1.3020-30 and also 1.3000.

GBP: The British pound surged yesterday on stronger-than-expected UK PMI manufacturing data and price has maintained a firm undertone after tripping stops above 1.5800 and 1.5850, however, offers from U.S. funds and Middle East names (for profit-taking purposes) are reported from 1.5880 up to 1.5910 and also at 1.5940-50. On the downside, bids from Asian and European names are tipped at 1.5800-10 and also 1.5750 with stops building up below 1.5720 and 1.5700. Some traders are awaiting the release of UK PMI construction data.

CHF: Despite falling to as low as 0.9115 yesterday on dollar's broad-based weakness, indicated bids at 0.9100-10 (for protection of stops below 0.9100) limited downside and price has recovered from there in New York session in part due to the release of better-than-expected U.S. ISM manufacturing data. At the moment, fresh rumors if SNB bidding EUR/CHF (which slipped to as low as 1.2031 overnight) are circulating and more buying interest from French names are reported at 0.9090, 0.9070 and also 0.9050. On the upside, offers from U.S. big names are reported at 0.9190-00, followed by mixture of offers and stops at 0.9250-60.

JPY: Although dollar recovered from yesterday's low of 76.03 to 76.35 in New York, indicated offers from exporters capped upside and the greenback slipped again from there, traders are starting to talk about yen repatriation flow kicking in since the beginning of February and stops below 76.00 option barrier are still in focus (verbal warnings from Azumi seemed had very little impact on the fx market), however, more buying interest from semi-official names are still noted from 75.80 down to 75.50 (another barrier) and better size buy orders are located further out at 75.30-40. On the upside, offers from exporters remain from 76.30 up to 76.50 and more selling interest is tipped at 76.80 and also 77.00-10.