Deutsche Bank Spot Desk Commentary

EUR: EUR resistance 1.1350 holds again.  Support should be found towards 1.1230/40 (last Mondays break up).   We are short EUR, and will reconsider above 1.1370.

GBP:  .8590 gives way yesterday, GBP still on outperformance mode considering USD strength last 12 hours.  GBPUSD struggled on the break of 1.3185 maybe false break?  Better CBI data again this week suspect GBP shorts will have another frustrating week. We have short bias, but its low conviction currently.

JPY:  JPY vols remain a little perky, most likely because of the level we continue to gravitate towards and the fact that there is some BOJ uncertainty on how they will handle JPY strength.  We don’t have strong conviction at these levels, although I feel more comfortable being long at these levels than short because of the above.

AUD, NZD: NZD stopped just shy of the RBNZ MPS high .7351, .7345 high yesterday.  AUD also stalled .7650/60.  Watch a move through .7350 which opens up .7500/30.  Expect range trading market to continue in AUD, although bias remains to sell rallies.  Watching equities and Oil closely.
CAD:   Oil rally yesterday failed quite quickly as did USDCAD sell off.   Correlation still high there. USDCAD based last week.  Yesterday we may have seen a short term top 1.2965 ahead of 100 MA 1.2975 and 1.30 resistance.  We have exited USDCAD longs for now, but will watch these levels closely for a reigniting of USDCAD longs.  Quiet schedule for the coming week, with the next key domestic risk event being the GDP report at month-end.

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