Free Trial

Amid quiet spot, futures and options.......>

STERLING
STERLING: Amid quiet spot, futures and options markets for currencies this
morning, EUR/GBP has been a standout, rallying through 0.91 to hit the best
levels since late March, with bulls now eyeing Fib resistance at 0.9184 for
direction.
- With little newsflow/catalyst behind the move, most have pinned the EUR/GBP
rise on month-end demand, with rebalancing models pointing to USD sales
supposedly helping.
- Despite the quieter options market overall, EUR/GBP hedging demand has been
well in demand, with options volume well ahead of recent averages for this time
of day.
- Activity has been driven by downside protection, with put notional traded
today slightly outnumbering that of calls. 0.87 put strikes have been in demand
throughout the morning, with 0.9275 seeing decent (albeit lesser) interest.
- Despite the breakout in EUR/GBP spot, front-end vols are still well within
recent ranges, suggesting markets are somewhat sanguine about risk in the pair
at present. 1m has traded either side of 8 points for close to two months now.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.