EurUsd traded lower on back of weaker EurJpy. The cross was sold after the Tokyo open, said to be for momentum funds, the cross fell from 130.20 to 129.715. EurUsd support comes in at 1.2250, coincidentally, there are notable option strikes expiring this week – total of Eur3.5bn worth of 1.2250 versus Eur2.2bn of 1.2300. In the daily chart, EurUsd trendline comes in at 1.2250.
Cable has been mixed this morning. Weekend news from The Sunday Times said Britain’s customs system will not be ready in time for the start of its new relationship with the European Union at the end of 2020. Another article said many economists said BoE could raise rates in May. Offers in the 1.3970’s but better reported at 1.4000. Downside trendline comes in at 1.3865.
AudUsd traded softer, amid weaker metal futures. Should expect some support surrounding 0.7700.
UsdCad took out 1.3100, there weren’t much offers and market rather orderly. From various reports, market has trimmed short UsdCad but not all. Our near term target is 1.3200 within reach.
Shares of South Korean carmakers Hyundai and KIA have fallen following reports that US is opening a probe on the carmakers’ air bags. With Kospi in red, UsdKrw propped up above 1070-handle.
UsdIdr touch higher on risk-off mode, Asian equity indices lower while UST yields up. Market players seen repositioning for event risk this week, presumably benefiting Usd. Our trader YT sees this UsdIdr pair trading higher purely due to expectations of FOMC, dot plot of future rate hikes and not reallocation of Rupiah assets.
New PBOC Governor Yi Gang spoke at news conference that China will keep prudent monetary policy and the financial sector stable. In Patrick Bennett’s opinion, the words are plain and simple, this is a continuation of policy.
UsdSgd feeling the squeeze, market is still hanging on to short position as the pair approaches resistance 1.3200-10 area.