From the FXWW Chatroom: News that the US Senate adopting the 2018 fiscal budget sent Usd higher. Yields of UST also up, 10-year gained more than 2 bps. Big move in UsdChf, safe haven no more as the pair traded up to 0.98475.
NzdUsd seen trading on weak side since NY close 0.7032; strong demand in the AudNzd from platform names helped take out the 0.7000 Kiwi barrier. Kiwi is offered but no follow through as talk of positive gamma emerged, there is a 0.7000 option strike for Nzd725mio rolling of Oct 25. News of US Senate adopting the 2018 fiscal budget went Kiwi towards 0.6978.
AudUsd was largely supported by AudNzd demand – post-Jacinda effect.
It was an extremely slow start for UsdJpy, small demand linked to Goto-bi Day. UsdJpy was struggling near 112.70’s then jumped to 113-handle on back of the US Senate news. UsdJpy rose to 113.31, remember, resistance 113.30-50.
Both EurUsd and GbpUsd traded lower on back of Catalan and Brexit news but US Senate vote carried the Usd further. Option strikes rolling off in New York today, 1.1855 for Eur1.1bn and 1.1800 strike for Eur1.5bn. GbpUsd traded to 1.3103, but bear in mind, there is trendline coming in at 1.3105.
UsdChf, one that hardly moves in Asia, saw market scrambling to exit safe haven trade. The initial jump came as soon as news headline flashed across the screen, sent UsdChf from 0.9775. The exit came above 0.9810, the price action from 0.9820 to 0.98475 was fierce.
Like the rest, UsdCad moved higher. Not a lot I can pen, just that most of the buyers were e-commerce names.
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