European Session: Orders and Options Watch
EUR: The single currency retreated after rising to 1.3213 yesterday in part due to weakness in EUR/JPY, bids at 1.3160 are being worked at the moment and more buying interests from Asian and Eastern European names are located further out at 1.3130 with mixture of bids and stops seen around 1.3090-00. On the upside, offers from various parties (including hedge funds) are reported at 1.3200-10, 1.3230 and also at 1.3250 with stops building up above 1.3215 and also 1.3255-60.
GBP: The British pound also slipped from yesterday’s high of 1.5985 on cross-selling in sterling against Japanese yen, some traders were seen taking profit on longs ahead of today’s UK data. At the moment, bids from Middle East names are still noted at 1.5910-15 with some stops placed below 1.5900 but more buying interests should emerge around 1.5880, stops placed below 1.5870 and 1.5845-50. On the upside, offers are tipped at 1.5970 and 1.5990-00 with bigger sell orders from model funds planted further out at 1.6020.
CHF: The greenback has rebounded from yesterday’s low of 0.9092 in part due to fresh talk of SNB may raise EUR/CHF peg up to 1.2500, however, offers are still noted at 0.9150-60 and also in good size at 0.9180-90 with sizeable sell orders remain at 0.9210-20, stops remain at 0.9225-35 and combination of offers and stops is still seen at 0.9255-60. On the downside, bids from Swiss names are expected at 0.9090-00 with some stops placed below 0.9090 and 0.9070 with larger buy orders tipped further out at 0.9050-55.
JPY: Although dollar jumped to an intra-day high of 81.20 in Tokyo morning, selling by Japanese margin accounts capped price there and the pair has retreated since, not much reaction to the news of North Korea launching missile probably because of the failure. At the moment, bids are still noted at 80.60-70 and stops remain below 80.50 option barrier and more buying interests should emerge around 80.20-30 with next barrier seen at 80.00. On the upside, offers are reported at 81.20 and also at 81.50 with mixture of offers and stops located at 81.85-95.