EUR/USD is still trading the 1.1200 and 1.1300 range. We note flows/interest in small bursts around those levels. Obviously, everyone is waiting for FOMC, which should provide us with some sustained direction. It is a though call, but there are still some chatter about the outcome can be USD negative initially.
CABLE had a quick move up after UK MPC minutes and Unemployment numbers, from 1.5660 to 1.5735, which were not that surprising. We think the current move might be overdone. We favour it to range 1.5745/1.5685 till FOMC. We also expect to see some light interest to buy EUR/GBP near 0.7145/50.
USD/JPY is slightly higher this morning, some cross driven activity supporting it. We note a few sellers of it around 123.80/85, mostly position adjustments into FOMC. We expect to see some stop driven selling below 123.20 and some layers of offers near 124.70/80 areas.
AUD/USD and NZD/USD are slightly lower this morning. Some decent cross activity in AUD & NZD against EUR and GBP is keeping both pairs under check. We expect to see some demand for AUD/USD near 0.7650/60 pre-FOMC. In NZD/USD, we expect to see good layers of offers way above market near 0.7100.
We also note some light demand for GOLD again below 1180. We would like to see it ranging 1177/1186 till FOMC.
Not much else to add this morning. The last 48 hours or so, we are mostly seeing risk/position adjustments rather than any commitment, which we all agree here with that. It might be a very difficult market after FOMC with low liquidity and the moves are overdone swiftly. (SFC)