FX Recommendations
Short EURAUD at 1.4260, targeting 1.3805. stop loss 1.4490.
Short EURUSD at 1.2520, targeting 1.1800. stop loss 1.2800.
Long EURCHF at 1.2305, targeting 1.2500, stop loss 1.1970.—- BNP
Trading in the Asian session was against a backdrop of US equities being near their all-time highs and general dollar strength. USDJPY we went up as high as 116.29 during Asia hours and then up further to 116.38 that was largely related to the timing of the Japan’s consumption tax hike. Continue to be positive on USD vs majors going into the next week.
Support in USDJPY comes in at 116.00. Low delta 130.00 strikes were paid in the market. Large expiry in AUDUSD 0.87 strike option comes in today. EURUSD is range bound 1.24/1.25 and do not expect much interest in the pair today. In Equities black spot is energy stocks which, because of the oil slump, will basically continue to be under pressure into year end.
Commodities: oil saw its worst week of losses since 2012, and WTI is in the midst of its worst run of weekly losses for nearly 30 years, leading market-watchers to speculate about the upcoming OPEC meeting in November. Iron ore is at a five-year low and Australia’s Glencore mining company has halted its coal production in response to high supplies. Silver has hit a 5.5 year high relative to gold, with gold investors remaining happy to sell into any rallies.