Both AUD/USD and EUR/USD have opened the week on a positive note and the prospect of CIT avoiding bankruptcy court has energised the bulls. No sign of EUR/USD offers from China as of yet (last week they were firstly spied around 1.4150 and then later in the week at 1.4120) and we may see some short covering if they don’t turn up. Dealers say that there are a number of stops above 1.4170 but the offers at 1.4200/10 are quite significant. AUD/USD buyers are seen around .7950 on the day and some significant offers are seen around .8100/25.
Elsewhere, EUR/GBP bids are solid around .8525 as we mentioned last week but there is no sign yet of the bids moving up. USD/JPY corporate offers are heavy between 94.80 and 95.20.
