Trial now
AUSSIE BONDS

AOFM Weekly Issuance Slate

MNI EXCLUSIVE

Analysts Split On BoK Rate Hike Timing Views

US EURODLR FUTURES

EDZ3 Lifted

CHINA RATES

China Repo Rates Diverge on Friday

TWD

CPI A Concern For Taiwan Central Bank

EURO-DOLLAR

Cross JPY demand at the Tokyo open provided the impetus for EUR/USD to move through the YTD high of $1.1966(Aug31, Aug18) and on to a posted high of $1.1997. Momentum failed to lift the rate through the $1.2000 level with talk of profit take and option linked sales providing the main resistance. Traders have noted that the $1.2000 level holds the strikes this week for EUR calls (total E3.34bln, today E834mln, Friday E2.15bln), traders this morning mentioning strong sell interest positioned to the $1.2000 level. However, rate retains its recent underlying buoyant tone, corrective pullbacks so far contained at $1.1984 with rate currently back above $1.1990. Focus today on final EZ Mfg PMI data, though will likely only react if different from the earlier released flash estimates. German unemployment at 0855BST ahead of EZ preliminary inflation. ECB Guindos speaks at 0830BST; ECB Lane 1700BST. US Mfg PMI1445BST ahead of ISM at 1500BST. If $1.2000 gives way can expect a move toward $1.2010/20 but expect fresh profit take selling to counter, possibly press rate back below. Current support $1.1985/80, $1.1950.

MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com