FX Flows

From the FXWW Chatroom: A bit of risk-off at the Tokyo open, Tokyo banks were sellers of UsdJpy and I suspect it had something to do with the Nikkei article about exporters buying forward contracts. Article cited exporters are likely to lower FX rate projections to 110-115. There was also another report where Nikkei interviewed the head of GPIF and he said the pension fund will embrace currency hedging. UsdJpy got to 110.96 near the fix then jumped to 111.18 on importers demand. Nikkei extends loss to more than 1% and UsdJpy felt the pressure.

Bremain sentiment and lower EurGbp pushed GbpUsd to 1.4509. We saw some selling of Cable from regional prop accounts into this 1.45-handle.

EurUsd is locked between offers 1.1290 to 1.1305 and buy orders below 1.1220 to 1.1190. Sales of EurGbp has nudged the single currency from 1.1270’s to 1.1263 (yawn).

AudNzd weakened from where NY closed 1.1250 to 1.1212. Earlier in the morning, Bloomberg posted a story that New Zealand Institute of Economic Research said RBNZ should keep official cash rate on hold.

NzdUsd took out stops above 0.6880 – printed high 0.6889 and stayed bid thereafter.

The only pair that is holding steadily is UsdCad. We were about 1.2680 when Canadians went home – risk-off had the Loonie at 1.2663. Offers surround 1.2710 while bids buying lower end of 1.26’s. BOC Governor Poloz is speaking today in NY at the Canada-US Securities Summit. The event kicks off at 8.40am EST. FWIW, Canada’s Husky is selling partial mainstream assets to Hong Kong’s Cheung Kong Infrastructure for Cad1.7bn in cash.

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