After reaching intra-day highs of $1.1803,....>

FOREX: After reaching intra-day highs of $1.1803, Eur/Usd faded back to $1.1777

as NY markets opened. Reports of an explosion in NYC brought some risk off

sentiment to the market briefly, however, this later dissipated. The pair

rallied pushed higher one more time reaching daily tops of $1.1812 before

fading. It is worth noting that there was a very large E1.02bn $1.1800

option-expiry, which could have been the reason price hovered around this level

before moving higher after today's NY cut. Usd/Jpy opened the European session

on a heavy tone, slippage through the Asia low extended to Y113.38 before

fading. Recovery efforts held shallow as rate drifted to Y113.32. Usd/Jpy pared

early NY losses in tandem with firmer UST yields to Y113.42. Despite this

recovery, efforts held shallow with immediate support at Y113.24 (Intraday low),

option-related demand behind through Y113.10/00 (Expiry $1.06bn). Consolidation

remained the theme into Europe as Aud/Usd tracked further kiwi gains to $0.7536.

Aud/Usd broke out of the narrow range it was trading within (0.7520-0.7536) as

the Aussie strengthened in NY reaching intra-day highs of 0.7543 before fading

to $0.7531.