EUR/USD had a rather volatile session yesterday but is in no man’s land. We expect the same range to hold for now. Stay flexible and fade 40-50 pip moves in either direction with stops at 1.2350 and 1.2550. Flows are still very mixed with no clear direction.
GBP/USD: Watch if the pair consolidates the New York and Asia moves in Europe, as in the past days. While we will be flexible intraday, we still prefer sterling lower in general and would be short above 1.5810-20.
USD/JPY: and Nikkei were supported despite some profit taking on longs ahead of 116 overnight. Buy on dips to 115.30/40. First resistance lies at 116.10 but USDJPY could touch new highs after two days of retracement.
UBS