Written by FastBrokers House
2011-01-26 00:00
Better day for sterling. Cable up at 1.5875 from early 1.5825, EUR/GBP down at .8633 from early .8650.
Cable came under fairly heavy selling pressure early, reaching session low 1.5771 before recovery. The recovery was helped in no small part by buying from China. UK clearer noted buying aggressively as well and we were soon back above 1.5800. Asian sovereign stepped in selling above 1.5820 and that slowed the rally for a time.
The release of the latest BOE minutes, showing 2 MPC members now calling for a rate hike elicited a spike higher in cable. The pairing stood at 1.5825 just ahead of the release and has been pretty well underpinned ever since. Middle Eastern sovereign buying has also been noted.
Talk now of buy stops through 1.5900 and 1.5930.
EUR/USD sits at 1.3705, marginally firmer from early 1.3690. The pairing came under a little pressure early, the market a little wary of the Irish Finance Bill vote. We got as low as 1.3654 before recovering strongly. Russia was strong buyer around lows. Middle Eastern buyers also notable. We quickly got over 1.3700 and managed to take out well-touted 1.3720 dnt interest (session high 1.3721) before bout of profit taking ensued.
Now talk of 1.3725 barrier option interest. Trailing sell stops noted through 1.3680.
USD/JPY up at 82.20 from early 82.05. It’s been all go….not really. US treasury yields are firmer this morning and that has provided the pairing with a little support. Still talk of Kampo buy interest 81.90/00. Japanese importer interest also seen down there. Sell stops seen through81.85 and 81.80, take your pick. Doesn’t really make much odds. Trailing buy stops through 82.70.
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