1) Overnight Wrap
A quieter session overnight with little news of note and most of the majors stuck in 50 pts range. China Yuan fixed at historical high again, but there wasn’t any impact to risk pairs given S&P trading below par most of the time. The worst has been down 1% for the futures, which has led most of the regional stocks off their highs and so are the risk pairs. That said, market lacks the momentum and extremely light flow from customers that we heard to drive the market further down. Swiss, after a horrific night, also settled down in range play, but traders still afraid to show any offer price in size with the anticipated new measures from SNB to fend off further Swiss appreciation.
Elsewhere Gold pared early losses and closes at 1767 and Crude oil trading at 85.
DJ USDCNY FIXED JUST 19 PIPS LOWER 6.3972 VS THURSDAY PARITY 6.3991
DJ CHINA WILL LET YUAN RISE FURTHER – REPORT
2) Orderbook and Flow
EURUSD bids below remains around the 1.4050 level.
USDJPY stops below are collecting 76.00-20.
Despite the move in CHF, there are few bids below in USDCHF or EURCHF.
FLOWS
USDCNY SELLERS STILL EVIDENT IN THE MACRO SPACE
but mixed and light flows in the other asian pairings
AUD SELLERS A SMALL STANDOUT too.
3) USD/Asia Run
USDKRW 1082.5 (Thursday morning mids 1086.0)
USDINR 45.45 (45.46)
USDPHP 42.53 (42.46)
USDCNY1y 6.2775 (6.3020)
USDIDR 8575 (8575)
USDMYR 3.0025 (3.0145)
USDTWD 28.85 (28.88)
USDSGD 1.2135 (1.2140)
4) Some Key Opening Levels
EUR 1.4199
GBP 1.6201
JPY 76.77
CHF 0.7578
WTI 84.8
Brent 107.5
XAU 1764.3
Silver 38.76
X-Over 655
Greece 1771
Porutgal 876
Ireland 788
Spain 369
Italy 368
UK 10y 2.54
Ger 10y 2.31
US 10y 2.28
Bund 133.30
Spain over bunds 264
Italy over bunds 268
BeBanks Index 78.74
3m Eur Xccy -86.0
HSBC Global Research