FX Flows

From the FXWW Chatroom: Felt like a setup – UsdJpy started bid with Tokyo names paying offers from 110.60’s up to 110.83.The Talk in the streets that BOJ will be buying good amount of ETF has gotten Usd bulls excited. Then at the Tokyo fix, EurJpy got sold from 120.37 to 120.105. UsdJpy got a slap from 110.78 to 110.64. The Usd tone turned negative and suppressed UsdJpy to 110.57. More offers are reported atop 111.05-10 and usual suspect has scattered bids on the downside, we call him “Dark Lord”.

EurUsd touched 1.0856 following the EurJpy fixing supply, then returned to 1.0860’s and bored everyone. Intraday support comes in at 1.0830 while the 1.0900-10 should attract profit taking. There are several option strikes at 1.0900, the largest is $1.1bn for March 31.

Boring session for GbpUsd – still locked in this 1.2555-70 range since IMM closed. Article in The Times that UK ministers have conceded that Northern Ireland has the right to leave the United Kingdom and join the European Union as part of the Republic after Brexit. Apparently, this came from a letter from Brexit Secretary, David Davis to Mark Durkan, the SDLP MP. Many specs are looking to enter long Cable on dips especially near 1.2426 and 1.2420, the 50-Day and 100-Day SMA.

Hard to pen on Aussie and Kiwi today. Both Iron ore price and SHFE Steel Rebar Futures are stable. AudUsd caught in this 0.7610-50 range. Corporate bids holding up at 0.7600-10 and I heard some stop sell orders developing under 0.7590 belonging to systematic funds and breakout artists.

WTI Crude May contract slightly firmer, advancing towards $48 but UsdCad struggled. UsdJpy move helped UsdCad up to 1.3390 and backed off to 1.3380’s. No Canadian data out today – might see this currency pair drift lower.

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