ForexLive European Wrap: Active little morning

Not much in the way of any really interesting new news, but it’s been an active session with plenty of choppy price action

EUR/USD started around 1.2995 and rallied over 1.3000 early. The way higher was blocked pretty smartish though, as reports surfaced that China was selling in the1.3010/15 area, followed by talk the Swiss National Bank was on the offer at 1.3020/25. Then further talk had the BIS and China joining the SNB on the offer up at 1.3020/25. That was that

From a 1.3023 session high we eventually got as low as 1.2963. Buy orders had been reported at 1.2950/70 and they proved durable. Large European fund reported buying down around the lows

An Asian sovereign was also seen good buyer around 1.2970/80. Didn’t get the name, but think it was either Bank of Korea or Monetary Authority of Singapore. Both are said to have been buyers of dollars overnight against their home currencies, and will haveneeded to have done a bit of diversifying

Subsequent EUR/USD recovery, aided by heavy buying of the EUR/CHF cross (up at 1.3775 from early 1.3645) has extended to session high 1.3036 before slipping back to 1.3025 at wrting. Shouldn’t think it’ll be long before we get reports of renewed SNB sales

USD/JPY up at 87.38 from early 86.95. Been talk of Japanese bank aggressivelybuying USD/JPY O/N calls with an 88.00 strike. Risk sentiment is in ok shape and that will have weighed on the yen a little

EUR/JPY up at 113.80 from early 112.95, with model funds seen good buyers of the cross this morning. Stops tripped through 113.50, more seen through 114.10

AUD/USD up at .9062 from early .9010. Talk well-respected US think tankhas been out tipping further RBA rate hike next week. Don't wait until it's too late, find out more about scales.

Cable up at 1.5545 from early 1.5495. Mainspurt came after the release of extremely strong CBI retail sales data (see above). We went from 1.5480 just ahead of release back over 1.5500 and onwards to session high 1.5546