NzdUsd printed 0.6952 and Tokyo banks emerged. We thought it was just for fix but demand continued and brought Kiwi back to high seventies. 0.6990-95 remains an obstacle. There are small option strikes expiring today 0.6975 and 0.7000.
There was an article from Kyodo News that the Japanese government could be planning a Jpy20trln stimulus program to support the economy had UsdJpy breaking the 107.02 trendline. The report said ruling party and New Komeito is putting up a stimulus package to help the domestic economy emerge from deflation and fend off possible adverse effects of Brexit.
We saw platform names hitting offers in GbpUsd in the 1.3260’s. We think the move was partially linked to stops and CTA names jumping in. The other reason is Asia market picking up this Telegraph article by MPC member Kristin Forbes saying that BOE should keep calm on rates until the Brexit fog clears. Cable exhausted after 1.3275 and drifted to 1.3230.
USDCNY fixed at 6.6872, in line with traders’ guess. USDCNH took out some weak stops below 6.6775 from Asia accounts but bounced higher after the fix. Some said the buying was linked to higher opening in the onshore USDCNY.
UsdSgd is trying hard to break above two moving averages 50-Day at 1.3582 and 100-Day at 1.3586. Also, do note there is a long term trendline coming in at 1.3597. Our trader likes to buy UsdSgd on dips but rather shallow as EM traders are buying UsdSgd as proxy hedge to UsdMyr.