Early Tokyo names kept offering UsdJpy from high 124-thirties and suppressed the Usd to 124.27 despite some light demand into fix from Japanese corporate for Goto-bi Day. Right after the fix, corporate buying surfaced took UsdJpy up and soaked up the offers at 124.40. Decent sell orders are reported at 124.50-60 while buyers lurk 124.10. Short-term accounts left stops at 124.00 and renewed buying at 123.60-75.
The New Zealand dollar fell on the weak labour report. NzdUsd was trading in the 0.65-forties and dipped to 0.6526. Late comers seen jumping into AudNzd and found better sellers towards 1.1300.
I was told EurUsd stops below 1.0880 when I walked in and a Swiss name sat on the bid, unwilling to let this go. Stories in UK press that British think-tank NIESR sees bigger Greek haircut – as much as 55%. One article in The Telegraph said the drastic fall in Greek bank shares meant that recapitalising the Greek banks is now going to be significantly more expensive; that the third Greek bail-out might exceed €100bn. It took few hours for market to take out the bids and triggered stops all the way to 1.0865. We also triggered small barrier at 1.0850. However, price action does indicate fairly good demand as well. Feels like there are option related bids scattered from 1.0880 down to 1.0800. There is a 1.0800-option strike exp tomorrow NY cut of decent notional.
Euro offers are found at 1.0900-10 and stop buy orders from intraday accounts thereafter.
One US name seen selling UsdCad post NY close from 1.3193 to 86 but demand was strong. We had various names paying our offers up to 1.3211. Took out a small barrier at 1.3210. Once that was done and dusted, UsdCad fell back to 1.3191. Yes, liquidity was not the best. Offers are light and thickens towards 1.3300. Most bids are under 1.3150. Next few days, there are a lot of UsdCad options expiries, average to decent size from 1.2850 to 1.3000, insignificant between 1.3100-1.3300.