Speculation is growing that the ECB is getting closer to doing something meaningful to bring down euro zone periphery borrowing costs. This is lending the euro decent support.

EUR/USD up at 1.2425 from early 1.2360, EUR/JPY up at 98.62 from around 98.00. CTA’s and a Swiss bank (not the really big one) notable buyers early. ACB selling circa 1.2380 provided a temporary cap, but euro bulls were not to be denied today.

Eventually stops were tripped through 1.2380 and 1.2400 in quick succession and we were off to the races. Unsurprisingly there was talk of Middle Eastern buying fuelling the rally. Same as it ever was.

Sell orders now seen clustered up at 1.2430/50 ahead of 1.2450 barrier option interest. More buy stops seen just North of there.

Cable up at 1.5773 from early 1.5725. Next hurdle now for cable bulls is the well-touted barrier option interest up at 1.5800.

USD/JPY 10 pips firmer at 79.38, garnering support from the EUR/JPY buying.

AUD/USD up at 1.0505 from early 1.0480. Talk of barrier option interest now lined up at 1.0550.