Spot Trader Views via the FXWW Chatroom

GS: G10 FX – LONDON SPOT TRADER VIEWS
POSITIONING => Positions squeezes across the board yesterday lead us to reduce our cash positions into the G10 spectrum, namely vs EUR, CAD and GBP. But we keep exposure through options (EURUSD downside, USDCAD topside).
{EU} Short EURUSD only via Options  => We cut our cash position yesterday (1.1370 then 1.1420) but we maintain some downside exposure via binaries. The pair should stay range bound for the time being : 1.1250 the key support vs 1.1600 the key resistance.
{CA} Long USDCAD only via Options  => Long USDCAD positions were the most hit by US dollar liquidation across the board. We cut our cash position but we’d rather play USDCAD topside via call spread for the time being given the risk of squeeze on the cash side. Levels : support at 1.2352 (yest’s low) while 1.2520 should provide a good resistance. 

GS: {JN} Flat USDJPY => The pair held relatively well into positions washout yesterday, a testament to the lack of positioning in the pair ahead of NFP. But we remain cautious, with support at 116.64 and resistance towards 118.00-10 and then the recent downtrend at 118.50.
{GB} Flat GBPUSD => Same consequences with the USD sell off : we cut our short but we still think so GBP rallies should be relatively limited given upcoming risks from UK elections. Levels to watch: resistance at 1.5200, support at o/n lows of 1.5139 and yesterday’s lows of 1.4988 

 

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