EURUSD respected support yesterday but little indicates it won’t be tested again. Key ref on south at 1.2974… USDJPY may have lost some momentum and has to at least re-visit the 80-handle… AUDUSD & NZDUSD are both falling hard and price action indicates that there is still supply out there to balance, so even lower levels are sought… EURSEK finally shows signs of life and over 8.8585 & 8.8710 would live it up even more. The failed attempt below 120.80 in the TCW index last week is also likely fuelling a weaker krona as is excessively low realized (& implied vols)… EURNOK added a bullish print and another attempt to escape the stretch should materialize. In this context the very stretched NOKSEK cross could score still, but not without an inherent reaction risk, so keep eyes open if you are involved… USDTRY & USDHUF both look bid still and the zloty is excessively strong (when taking the downside risks for the WIG index into consideration)… Bunds hesitated at a fresh high yesterday and this could have some impact over the coming session(s) before extending gains… The S&P500 index looks staged to test support below in the 1357/1329-zone and Brent Crude could also post additional losses off the recent peak…
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SEB tech team