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  • Writer's pictureMike Paterson

Euro in demand again as attention turns to the ECB

It's currently the turn of the Euro to be the best of an average bunch with recent Italian political wobbles pushed to one side and market focus on next Thursday's European Central Bank meeting. No changes in rates or policy at this time but much expectation about further clues as to when things might eventually change and policy tighten.

I don't hold out much hope for any greater clarity (more market hype than fact currently) so we could well see a sell-the-fact reaction but for the moment traders seems happy to cover short positions and establish a few longs.

EURUSD has this morning been up to 1.1838 after being capped yesterday by large option contract interest at 1.1800 as I highlighted. Buyers now into 1.1800 and 1.1775-80 with larger interest into 1.1750. Sellers poised between 1.1850-60 and 1.1880-85 with larger around 1.1900

EURGBP has been up to test the 0.8800 sell interest (GBPEUR demand around 1.1365)  and remains underpinned on the general EUR demand. Buyers poised into 0.8730 STILL then 0.8700. Sellers into 0.8800 then 0.8830.

GBPUSD has been up to 1.3473 this morning on some general US$ selling but with rallies capped by the EURGBP demand along with some GBPJPY sell interest around 148.00.Immediate support/buying now at 1.3420 then between 1.3380-00 and 1.3350.Sell interest between 1.3480-00 still with more between 1.3520-30 then 1.3550. Keep selling those rallies for the moment but with a little caution to respect the current dip demand too as I've been mentioning.

USDJPY has capped above 110.20 with large option contract interest at 110.00 in play and expected to provide sell interest . Buyers now into 109.75-80 then 109.50. Sellers at 110.30 still then 110.50. USDCHF has fallen back again to 0.9817 tempered by EURCHF breaking up through 1.1600 but EURUSD demand helping to drive it lower.

The Aussie and NZ$ remain underpinned but going nowhere in a hurry with cross-play interest helping to keep ranges contained.Buyers at 0.7620 still and 0.7600 then 0.7580.Sellers 0.7680-00 still. The Canadian $ too is in range mode. USDCAD buyers still around 1.2900 then 1.2880 and 1.2860. Sellers 1.2980-00 and 1.3030

We're still ranging behind all the noise so get your orders into take full advantage of the limited moves.

Have a good day out there one and all.

Interbank Rate 08.28 BST GBPUSD   1.3456 EURUSD   1.1825 EURGBP   0.8789 GBPEUR   1.1377 USDJPY   109.96 USDCAD   1.2951 USDCHF   0.9823 GBPAUD   1.7576 GBPCAD   1.7424 GBPCHF   1.3217 GBPZAR   17.1380 GBPHKD   10.4324 EURHKD   9.1698

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