CIBC FX Flows: FXWW

From the FXWW Chatroom: Usd weakened against most pairs and I suspect this move was caught by Cable triggering 1.4000-option barrier. The pair printed 1.4005 very quickly, pulled Euro along to 1.2273.
-EurUsd returned to high again and printed 1.2275 where offers were challenged. Some said the buying was linked to EurJpy move. EurJpy fell to 135.75 following the BoJ announcement.

-UsdJpy ran into strong resistance at 111.00, then then Nikkei popped 1-plus percent and UsdJpy finally took out 111.00. Japanese megabanks were main buyers, some talk of positioning on speculation BoJ Governor Kuroda will deliver a dovish stance. UsdJpy got to 111.02 and where sellers surfaced. I heard the offers came from strategic macro accounts. BoJ announcement came earlier than expected, which meant totally unchanged. BoJ raised view on current CPI, expectations for inflation have been more or less unchanged. The central bank had previously said inflation expectations were weakening. UsdJpy fell to 110.55.

-Usd strength regained in the mid-morning, Eur into the low 1.2250’s dragged the AudUsd onto 0.79-handle. There has been rumour of offers in AudUsd scattered up to 0.8050 from various names. Bids near 0.7950 and stops in the 0.7930’s. Watch 0.7900, maybe distant, there is a large expiry there for Aud2.52bn mature Jan 28.

-Well Cable printed 1.4005 once, obviously someone or some people had that stops. Checked the platform and a lot of business went through from 00 to 05. Spot has eased back to 1.3982. An article in The Independent that UK has already “agreed in principle” to a Norway-style Brexit transition period in which it accepts all EU rules with no power to shape them.
Asians
-Tit for tat. US Trump admin has slapped steep tariffs on imported washing machines and solar panels. This decision safeguard cases followed findings by the U.S. International Trade Commission that both imported products “are a substantial cause of serious injury to domestic manufacturers”. Share prices of South Korean LG and solar panel makers fell. In retaliation, South Korean trade ministry has asked WTO to approve suspension of trade concessions, reinstating tariffs on US products. South Korea will also file a complaint to WTO.
-While rest of Usd/Asia traded lower, UsdKrw has been steadily around this 1068-level and then moved to 1070 mid-morning.
-UsdTwd had an interesting move. It was reported that officials told local banks not to show UsdTwd offers before the market closed yesterday. Onshore spot closed at 29.432. Bids were scarce and the onshore spot opened at 29.30. We traded down to 29.114. Watch the closing.
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