FX Flows via the FXWW Chatroom

Overall a mixed session, Usd kicked off the week firm but weakened into Asia open. As soon as the PBOC CNY fix was published, Usd weakened further across the board. No follow through after all this is FOMC week. Into late morning, 

FOMC week and our strategist Bipan wrote this morning, attention should be paid to how fast the Fed moves this year since that will have greater implications for how the Usd moves going forward. His thoughts were also echoed by FT’s article “Five questions ahead of US Federal Reserve meeting”. The authors highlighted that the real question is really what comes next and how fast does the Fed tighten policy over the next year? 

Nothing positive on Greece over the weekend. Non-stop jabs between Greece and Germany; Greek Defense Minister Panos Kammenos versus German Finance Minister Wolfgang Schaeuble. On Sunday, PM Alexis Tsipras said Greek state is not facing a cash shortage. (Famous last words?) 

Euro found buyers at the Asia open, profit taking, was trading in the 1.05-teens till the CNY fix sent Euro to 1.05355. Orders up there are mixed – I heard offers scattered from 35-55 which explained the high print. However, I’m also warned of stops from US account 1.0540-45. 

UsdJpy traded 121.30-48 and slapped down to 121.215 after the CNY fix. Large offers are spoken off above 121.75 and Japanese banks are fearful that further decline in Jpy may prompt the government to change its tune. 

Australian dollar bounced to 0.7659, several banks have stops above 0.7675, we have as well but seemed strange that Taiwanese institutions were seen selling Aud in the fifties.

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