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FX Market Review

EUR/USD: 1.1155 - 1.1209 overnight range. Spot pops back over 1.12 in Asia before IFO and Greece meetings. Beware of another break lower if equities extend gains (inverse correlation spot/stocks). 2wk EUR puts/USD calls cheapen to 1.1350.

USD/JPY: 123.76 - 124.11 overnight range. Spot trades over 124.00 on 19y high for the Nikkei (close to 21k, on reported strong domestic buying), and dollar bid on comments by FOMC voter Powell. Resistance 124.50. EUR/JPY flirting with 139.0.

GBP/USD: 1.5724 - 1.5763 overnight range. Cable bid in Asia after two consecutive down days, hawkish FT interview by MPC's Weale offers support. Res 1.5790. Door open for a return to 0.7014 for EUR/GBP if 0.7055 gives way.

AUD/USD: 0.7713 - 0.7727 overnight range. Spot has defied a decisive break below 0.77 handle barring a brief dip yesterday. Carry demand amid low volatility cited for the resilience but the bias remains for a break lower. Supp below 0.77 at 0.7650. 

 

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