== $ == Banks Orders Book == $ ==

[Abo Abdullah]

Talk of a short-term directional fund selling USD/JPY, targeting sell stops sub-97.80

[Abo Abdullah]

EUR/USD

[Abo Abdullah]

USD/JPY - Stops under 97.80 have been cleared. Asian account demand at 97.50 with stops underneath in good size

[Abo Abdullah]

US Market Report

Market Briefings

•Central bank (German Bundesbank) demand for EUR/GBP
•Leveraged names bought the pair ahead of the EoM fix
•Directional hedge fund also noted buyer
•Strong month-end demand supported the Euro across the board
•Real money account (Middle East) sold AUD/USD near 0.9260
•Asian sovereign name (possibly ACB) bought AUD ahead of 0.9250
•Model funds and props bought EUR/AUD
•Leveraged names sold GBP/JPY
•Sovereign name sold EUR/USD
•AUD selling continues as sentiment turns negative again on comments from RBA Governor Stevens that there is more room for rate cuts + the recent decline in AUD makes sense from a macroeconomic perspective and it would not be a major surprise if a further decline occurred over time
•Sovereign demand ahead of the 0.9050 level provided some support and trades took profits on short positions, but this is unlikely to hold for too long; stops beneath the mid figure look very vulnerable
•However, traders remain rather reluctant to buy the USD ahead of the FOMC meeting, so that might delay any serious decline in the Aussie
•NZD to benefit from interest rate differentials between Australia and New Zealand
•Sentiment for other major currencies rather mixed, traders are waiting for key risk events this week before placing any larger bets
•Looking at the FX Heatmap, AUD is clearly the worst performer (- 1.50 % vs the USD), followed by the NZD (- 0.50 %); other currencies little changed on the day

EUR/USD
•Barrier option at 1.33 gone, but still decent resistance seen there
•Short-term base at 1.3240, should provide support given tight intraday range
•Bids at 1.3250, larger from 1.3220 to 1.32
•Sell stops building again beneath the mid figure
•Offers at 1.3280 and larger at 1.33 (sovereign supply still active)
•Buy stops at 1.3305 from system funds and more through 1.3310

GBP/USD
•Light bids at 1.5280, better demand seen from 1.5250 to 1.5260
•Sell stops accumulating sub-1.5250
•Offers lined up at 1.5350 and 1.5380
•Buy stops through 1.5360

USD/JPY
•Bids at 97.50/60, larger ahead of the 97.00 handle
•Sell stops through 97.80 and sub-97.50
•Offers at 98.40-60 in solid size, more at 98.80 and 99.20
•Buy stops through 98.55

AUD/USD
•Bids from locals and Asian sovereign name at 0.9050, then ahead of the 0.90 level
•Sell stops building already sub-0.9050, larger beneath the big figure
•Offers at 0.91, 0.9130 and 0.9150
•Buy stops accumulating above 0.91 and 0.9150

EUR/JPY
•Bids 129.50/60 and larger at 129.00
•Sell stops building through 129.50 in good size
•Offers at 130.50
•Buy stops above 130.60 sizeable

KEY NEWS :
•12:00 GMT (08:00 EST) - German CPI
•14:00 GMT (10:00 EST) - US Consumer Confidence

[Abo Abdullah]

EUR/USD - Sovereign name and leveraged accounts offers at 1.3300 helped cap the rally, but large stops above may continue to attract

[Abo Abdullah]

Short-term specs got in long EUR/USD expecting a huge beat in German CPI data; after coming in relatively in line with expectations, a small sell-off occurred as they exited their positions

German CPI (MoM) 0.5% vs 0.3%; (YoY) 1.9% vs 1.7%

[Abo Abdullah]

Options Expiries for the NY Cut (10:00AM ET)

USD/JPY - 97.50, 98.00 (Large)
AUD/USD - .9150
EUR/USD - 1.3250, 1.3285, 1.3325
GBP/USD - 1.5300, 1.5350
EUR/JPY - 130.00
EUR/GBP - .8630
USD/CAD - 1.0270; 1.0300

[Abo Abdullah]

EUR/USD

[Abo Abdullah]

USD was well bid through Asia and Eurpean sessions; now we're seeing USD becoming well offered as follow-through with AUD weakness was disappointing and short AUD/USD positions are being covered; EUR/USD being bought and USD/JPY sold as well.

[Abo Abdullah]

AUD/USD - Running into selling interest from real money accounts above .9100. Sell stops below .9050 have been noted in good size

[Abo Abdullah]

Model funds noted buyers of EUR/USD as it gains momentum and holds its strength

EUR/USD - Corporate offers at 1.3310, macro and spec offers ahead of 1.3350, but if that mid figure is cleared it would be a very strong case for bullish sentiment

[Abo Abdullah]

GBP/USD – leveraged accounts noted Start demand building at 1.5260/50 in good size

[Abo Abdullah]

Cable slips back below the 100-day moving average, eyes one-week low at 1.5263

The pound is lower for the third consecutive day and testing support at last week’s low.
If the July 25 low breaks, look for the next layer of bids in the 1.5255/50 zone, followed by 1.5225/20. It will be tough to get a breakout until the Fed and BOE. I think this pair has been squeezed higher and the risks remain that the BOE will be dovish.

[Abo Abdullah]

The USD demand that's been seen over the past hour reported due to rumors about Obama possibly mentioning tax breaks for companies with billions in offshore holdings

[Abo Abdullah]

EUR/USD