Wednesday's U.S manufacturing data added strength to the "status quo" view for U.S interest rates and gave the Dollar a small boost. The Golden week holidays and the May day breaks in Europe have sapped market interest from USD/JPY and flows are reportedly light. The Japanese holiday has not prevented the export sector from hedging and Dollar sales have stunted USD/JPY"s progress from the European open.
A 120.00 to 120.25 band was played out in London with a brief drop to 119.97 finding bids. Stops are touted above 120.30, option barriers at 120.50 and offers mixed in between these two levels. Little interest touted on the bid side but standing interest from Asian and U.S accounts is expected to stall if not hold a 120.00 test. Away from the spot action the focus will be on another set of U.S data releases.
Jobless claims for week ending April 28 are expected to show 325k new filings. April's ISM non-manufacturing data is expected to show a 53 reading from March's 52.4 return. The options market is touting 120.20 expiries, a USD 500 mln 119.85 roll off and 120.50 barriers.
No comments:
Post a Comment