European Session: Orders and Options Watch

EUR: The single currency remained confined within a relatively narrow range in part due to cross-trading against both yen and sterling, profit-taking activities after the 130 billion euro Greek bailout package put pressure on euro and bids at 1.3210-20 were filled, however, buying interests are still noted at 1.3190-00 with stops remain below 1.3180 and 1.3150. On the upside, offers are tipped from 1.3250 up to 1.3280, followed by combination of offers and stops in good size at 1.3290-00 but fresh offers are reported further out at 1.3350-60.

GBP: Although cable rebounded briefly yesterday after the release of biggest monthly PSNB surplus in 4-year, sterling ran into heavy offers from UK clearer and model funds and dropped sharply from 1.5865, stops below 1.5790-00 were triggered and bids at 1.5770 were also filled. At the moment, bids from European names are tipped from 1.5750 down to 1.5725 with more stops placed below 1.5720 and 1.5700. On the upside, offers from same parties and French names are lined up from 1.5810 up to 1.5835 with mixture of offers and stops located at 1.5860-70, followed by bigger stops above 1.5880 and 1.5900.

CHF: Despite falling again yesterday from 0.9149 to as low as 0.9083, short-covering after the Greek bailout plan lifted the pair and the release of weaker-than-expected Swiss trade data also pushed the pair higher but offers ahead of yesterday’s high of 0.9149 put a lid on the greenback. At the moment, selling interest from Eastern European names are still noted at 0.9140-50 and although stops are placed above 0.9155-60, more offers are reported at 0.9190-00 with bigger stops tipped above 0.9210. On the downside, bids from U.S. and Swiss names are expected from 0.9100 down to 0.9080 with some stops placed below latter level and combinations of bids and stops are seen further out at 0.9050-60 and also 0.9000-10.

JPY: Option barrier at 80.00 was finally tripped on broad-based weakness in yen and hit a 6-month high of 80.08 in Tokyo, however, offers in good size from exporters are still noted at 80.20-30 with more selling interests expected ahead of next barrier at 80.50 (with stops above). On the downside, bids from various parties (including U.S. names and Japanese investors) are lined up from 79.70 down to 79.50 with mixture of bids and stops remains at 79.30-35 but sizeable stops only emerging below 78.95-00 and 78.50-60.