One large regional SWF (Sovereign wealth fund) and a few Asian central banks were very active buyers of both AUD and EUR on Friday last. If this buying returns then its unlikely that the Asian trading session will fight it.
Dealers are of the opinion that the intraday risk today for the EUR/JPY is to the downside.
European Sovereign debt issues are never far away from trader’s minds and EUR longs are always a tad nervous about new revelations. The inability of USD/JPY to rally without BoJ help is a concern for bulls in that market. Combine the two and dealers are of the opinion that the risky side today in EUR/JPY is the downside.
Intraday resistance levels are at 112.45 and 113.00 and support levels are at 111.60 and 110.65.
- USD/CHF: Large sell orders which we mentioned on Friday starting at 1.0175 through 1.0250; large buy orders starting at .9850
- USD/JPY: Heavy corporate selling interest towards 86.50
- EUR/USD: Light stops reported below 1.3025 and 1.3000 but mixed in with moderate buying interest. Bids getting heavier 1.2960 through 1.2920. Heavy offers around 1.3160 with lighter profit taking seen at 1.3120.
- AUD/USD: Solid bids starting at .9250 through .9200. Large binary option at .9475 expires 30th Sept.
The BoK has plenty of experience in FX market intervention and their Governor, Kim Choong Soo, reckons that the BoJ can’t halt the JPY rise on its own, Bloomberg reports.
All of the major pairings are trading close to their NY closing levels after a fairly uneventful weekend on the news front.
USD/JPY traded all day Friday in a 15 pip range and it looks like it doesn’t want to go any higher without help from the BoJ. The AUD/USD stalled again ahead of the big option level at .8475 and from a technical perspective, both EUR/USD and cable made disappointing closes to the week after breaking above important resistance levels.
Good luck today.
We all get to talk like Gerry today…
Don’t blame us, says China.
ECB bought Irish bonds on Friday…
A Bloomberg survey of economists say the Fed will refrain from QE at this week’s FOMC.
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