European Session: Orders and Options Watch
EUR: The single currency rebounded after yesterday's retreat to 1.3208 and offers at 1.3250 were filled, however, mixture of offers and stops remains at 1.3275-85 and more stops are placed above option barrier at 1.3300 (with defensive offers expected below). On the downside, bids are still reported at 1.3205-10 with stops building up below 1.3200 but more buying interests are tipped further out at 1.3180, followed by combination of bids and stops at 1.3150-60.
GBP: Despite rising to this year's high of 1.6304 yesterday (barrier at 1.6300 was tripped), the British pound ran into heavy offers and has retreated quite sharply on profit-taking, bids at 1.6220 were filled and stops at 1.6200 are now in focus, however, more buying interests are expected to emerge around 1.6180 and 1.6155-60 with more stops placed below 1.6150. On the upside, offers from UK clearer are tipped at 1.6230 and 1.6250 with more selling interests remain at 1.6280 and 1.6300-10.
CHF: Although the greenback rebounded yesterday on short-covering after holding above last week's low at 0.9052, renewed selling interests emerged at 0.9097 and dropped since New York morning on selling by European names and offers from same parties are still noted at 0.9075-80 as well as 0.9095-00 with some stops placed above 0.9100, followed by combination of offers and stops at 0.9130-40. On the downside, bids from Swiss and French names remain at 0.9050-55 and also at 0.9020-25 with mixture of bids and stops located at 0.9000.
JPY: Dollar slipped again this morning in Tokyo to a fresh 2-month low of 79.67, however, bids are reported above 79.50 option barrier and traders are watching closely whether MOF may conduct any direct or indirect intervention and although stops are placed below 79.50, fresh bids should emerge around 79.20 and 79.00. On the upside, offers remain at 80.00 and 80.20 with mixtures of offers and stops seen at 80.50-55 as well as 80.70-80.