USD/JPY found good size bid interest around the 115.00 handle after the initial test lower saw a 114.95 low. A rumour of a widening in the Chinese FX band next week was the catalyst for the swift reversal from the 115.65 area. Generally, the market was long into the number, with USD/JPY hovering around the 115.70 area ahead of the release.
The pair extended to 115.87 but was unable to overcome good size offers, which fueled profit taking by CTAs, macro funds and speculative accounts that were forced long through 115.45 in the European morning. Sovereign name activity has also been tipped, largely through the "Europeans", while USD/JPY has also seen its own commercial interest, yet on the bid side. This has stemmed some of the supply that is currently coming in above 115.00.
No comments:
Post a Comment