FX Flows: FXWW

From the FXWW Chatroom: Washington Post caused a weaker Usd, UsdJpy which was trading close to 114.00, slipped to 113.60’s. There was some option strikes maturing today New York cut, these should provide some gamma play. Between 113.95 and 114.00 strikes we have $1bn, $900mio at 113.75, $700mio at 113.50.

EurUsd is caught between this Washington Post article and option-related as well as EurJpy selling. The single currency rose to 1.1607 and ran into selling pressure from EurJpy cross. There are also some options gamma play, 1.1600 strike maturing today and tomorrow totalling Eur2.3bn. There is also a talk of sell orders are surrounding 1.1630. Downside support is 1.1550.

EurJpy opened weaker following a close below the 55-Day SMA 132.16. Rumour bids are scattered 131.50 to 131.40, could get ugly below 131.35.

British government on the rocks, Priti Patel, Boris Johnson and Brexit talks stalled. With the GbpUsd 1.3150 option strike out of the way, fate lies on EurGbp. Diverging Euro and UK rates, plus the UK inflation path Gbp supportive. The 200-Day SMA comes in at 0.8765 and break below 0.8745 will trigger some stop sell orders from quant funds. GbpUsd offers atop 1.32-handle.

UsdCad firmed up after the API report then the GOP corporate tax cut delay sent the pair back to 1.2759.

Aud and Nzd slightly firmer on that GOP news. AudUsd bids are reported near 0.7630-35, NzdUsd buyers near 0.6890. However, topside on the Kiwi capped by offers linked to option strikes maturing today. 0.6920 strike for Nzd400mio and 0.6950 strike for Nzd650mio.

China Literature (772 HK) debuts today on the HK Exchange and it was an amazing race. It was priced at HKD55 per share, traded up to HKD100 per share. According to our trader Perry, this is one of the strong IPO that has squeezed HKD funding past 2 weeks. Not a great deal to pen on Usd/Asia – CNY fix at 6.6277 was within traders’ estimates.
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