EUR/USD: opened flat and should remain rangebound until the ECB decision tomorrow and Friday’s US payrolls. We expect the heavy tone to continue and any correction towards 1.3250 should be sold. While support lies at 1.3105, the pair is likely to test 1.3000 sooner rather than later.
USD/CHF; is trading sideways with a bid tone but unable to break significantly higher. After good buying of dollars across the board over the last few sessions, the market feels a little long and tired. We might see a correction; go short then, only squaring through yesterday’s highs of 0.9210-15. E
GBP/USD: has been a lot of pressure due to the impending Scottish referendum. Cable kept drifting lower overnight but we would expect the slide to slow down ahead of the BoE tomorrow and considering the sell off over the last few sessions. We still prefer to sell rallies to 1.6515/25 with stops at 1.6555, for 1.6405/15.
AUD/USD: The pair remains raaground, torn between the theme of dollar buying and seasonal demand from Australian corporates amid the dividend season. We prefer to sell rallies with the key pivots at 0.9200 and 0.9425.
UBS