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Single Currency Erases Overnight Gains

EUR
  • EUR continues to chew back through the overnight gains to put the pair back to flat at 1.0535 at typing, with the pace of the retracement accelerating slightly in the past 10 minutes or so.
  • Volumes overnight still relatively light, despite the Asia-Pac equity rally and hopes of a China COVID policy reversal building.
  • EUR futures volumes sit around 10 - 15% below average for this time of day, with JPY lagging even further: JPY futures volumes are around 25% below average for 8am London time.
  • Sizeable expiries in EURUSD sit at $1.0450 (E828mln), $1.0500(E727mln) and $1.0570-75 (E1.0bln). USDJPY at Y134.00 ($980mln).

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