From the FXWW Chatroom – Nothing earth shattering from G20, US Treasury Sec told reporters he didn’t feel isolated at G20. I guess he was trying to contain the damage. Monday opening was slow and steady, despite last week’s Trump tweets on Fed and interest rates.
USDJPY started at 111.25/35, there was a brief print of 111.50 then drifted lower. Weaker USD wasn’t surprising, given the weak Nikkei Index. Leveraged names were seen trimming long USDJPY position on break of 111.20; there must have been stops triggered too. We got to 110.86, USDJPY popped to 111.17 after BoJ announced special JGB buying operation. Heard some leveraged names took advantage of rally to sell USD, turned the pair towards 110.75.
EURUSD advanced towards 1.1750 where our trader Jon said he saw offers planted in the main platform. Suspect the offers could be linked to 1.1750 option strike due this week worth near EUR2bn. Also maturing today, strike at 1.1700 worth EUR2.1bn. EURUSD is still stuck in this 1.15-1.18 range. In the news earlier today, Atos a French digital service provider is paying $3.4bn to buy Syntel Inc., a US-based IT company. The French company will pay $41 a share in cash. No details on financing.
Dominic Raab, UK Brexit Sec, told BBC that a deal with EU can be reached but UK is still preparing for possibility of no deal. Not much I can pen on the GBPUSD, the pair is just reacting to USD weakness. Against the EUR, GBP edged higher thanks to Sunday Telegraph article where he said UK will tell EU it will not pay the GBP39bn divorce bill if there is no trade deal.
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