AUTOREFRESH 
Asian FX market wrap: GBP again the biggest loser
- Weekend polls suggesting a hung parliament in the UK have encouraged further selling of the GBP
- Potentially large M&A flows also undermine the pound
- Reports that Germany and France will buy Greek debt have suported the EUR, especially on the crosses
- Australia’s current account deficit as expected at AUD$17.45 bln
- Chinese February PMI slips back to 52 after extended holiday period and government actions
- Copper price up by 6% in aftermath of Chilean earthquake
- Market positioning: EUR, GBP shorts at or close to record levels
- Regional bourses gain around 1% on average
- Gold steady at $1118/oz
Early interbank trade saw a sharp gap higher in EUR/GBP after the negative poll and M&A news for the pound and the more positive news on the Greek situation. EUR/USD climbed to 1.3660 in the Sydney morning session but eventually fell back as the cable selling intensified. Range: 1.3594/1.3660
Cable opened 50 pips below its NY closing level of 1.5250 and continued to fall into early Tokyo before finally halting at 1.5130. The subsequent bounce got back to 1.5200 but it’s been consolidation since. Ranges: Cable 1.5132/1.5210, EUR/GBP .8968/.9000
USD/JPY has traded in a 88.83/89.20 range and EUR/JPY in a fairly tight 121.06/56 range. The cross saw its high at the Tokyo fix as dealers marked the pair up ahead of strong demand but interest ebbed away soon thereafter.
The AUD has been supported by the strong commodity prices but has been fairly quiet ahead of tomorrows rate decision.Range: .8956/.9008.
Markets: Nikkei +0.7%, HK +1.7%, Kospi +0.7%.
Hey Sean, Couldn’t fall asleep (you know how these things are) because a thought was gnawing at me. GBP/JPY broke down from it’s long-term support at 139. Do you reckon that, like EUR/JPY at 127, that support will become resistance and get tested, setting up a good medium-term risk/reward trade. I was thinking short at 138, with a stop at 140 and a target of… maybe just an open target with a 133 number to start with… Any thoughts on GBP/JPY? I had sworn off GBP, but this seems like an interesting trade.
I think this is still the biggest trade out there. A macro friend of mine who is v v technical told me a few weeks ago that he expected to see 105 (and it was at 143 when he said so). Not sure where to leave a s/l or where to enter. 138 sounds good, perhaps only smalls to begin with and then start adding once the important levels become clearer.
Is any one expecting a rise in GPB/USd after this morning gap from 1.52- 1.51? though i’m expecting it to hit 1.512 before bearing up. i think a buy order will be good at this point or what did u think?