EUR/USD: Is unlikely to move much ahead of the ECB decision on Thursday and US payrolls on Friday. Flows were very mixed and Eurozone PMI data didn’t provide much direction yesterday. We were small long and plan to add ahead of 1.2419 but with a close stop at 1.2395 as it’s against the overall view and trend.
USD/JPY: Was choppy after the Moody’s downgrade on Japan yesterday. Buy at 118.40/50 with stops below yesterday’s low of 117.70/80.
AUD/USD: Go short at 0.8550-0.8600 with a tight stop above 0.8650. NZD/USD remains a sell on rallies to 0.7920-50 with stops above 0.8050.
UBS