EUR/USD: took out resistance above 1.2950-60 to a high of 1.2980 on a short squeeze in New York trading on Friday. Spot opened higher today but has been offered since. The pair was likely dragged higher due to short-term positioning and we doubt it will stay up here for long. Stay short and add at 1.2975 with stops at 1.3020.
GBP/USD: Sterling had a quiet open with all eyes on Scotland’s referendum on Thursday as opinion polls point to a close race. Stay flexible and play the ranges until then, prepared to play any news we get.
USD/JPY: was resilient even with Tokyo on holiday and ahead of the FOMC meeting later this week. We are comfortable being long but it might be time for small correction in the pair. As resistance held well at 107.40 on Friday, we would look to buy around 106.70/80.
AUD/USD: opened 30 pips below the New York closing at 0.9020 following the weaker China IP released over the weekend and has traded soft throughout the session. Be cautious of getting short on the wrong levels. We don’t expect this selloff to be straight forward with some nasty bounces likely in between. Look to sell at better levels, starting ahead of 0.9100.
UBS