{GB} After a respectable GDP print GBP is higher overall. But GBP$ continues to be bound by the broad 1.4350 – 1.4150 range that we have seen since the blow off top into 1.4350 late last week (held the past 2 sessions as well). From here we would expect there to be bids into 1.4250 judging from how we traded y’day in our session (with RM demand sen here and plenty of buyers in the market as well). If we do test the topside expect there to be offers then stops into 1.4400. EURGBP has rejected the 7640-80 region a few times in recent sessions and we would look for offers into that region on a restest today meanwhile our books are clean on the downside until the 21-DMA just below 0.7500. No significant expiries today
{JN} USDJPY has been quiet overnight (and all week actually) as we’ve failed to get through 119.00 in a meaningful way over the past 24hrs but despite a bout of risk off post FOMC we remain within striking distance. From here we expect more demand on dips below 118.40 with more significant supports into 118.00-117.80 and then 117.50-30 and if we do decide to re-test the downside we have further support levels into 116.80-40 and then the big one from last week lies 116.00-115.80. Up above we’ve stalled above 119.00 for now but if we break we think this opens the 120 handle quickly. EURJPY broke higher this morning on the higher EUR taking out the 129.50 region that it couldnt get through in our session y’day post FOMC. So now we’re looking at a re-test through 130.00 which should be supportive of both EURUSD and $JPY if it were to materialize Meanwhile on the downside most significant supports have held so far and we would expect dips into 128.00-127.50 to hold with key support on the 126 handle looming (this is a region we haven’t really probed in earnest since early 2015). In terms of expiries the big hot zone today is 118.00-50 with about 2bn total expiring then there are abo
{CA} USDCAD continues to press lower overall but the pace of the move has slowed considerably in the 1.4000-1.4100 region and we think that is because the market is trying to build a base here as we have had this level circled as the longer term support for a while. So from here we expect demand in this broad region with supply likely to emerge on bounces into 1.4300 initially as we see a very obvious resistance into 1.4350-1.4400 (where we held on the downside last week). Saying all of that energy prices will continue to dictate CAD moves as this CCY should move in lock step with WTI. The DTCC sees a light expiry calendar this AM but there are about 750mln of 1.4150s