You probably don’t want to read too much into it because Sunday evening Australasia FX moves aren’t exactly the most reliable way to get a read on what markets will look like 12 hours from now, but you should nevertheless take note of this:
So that’s EURJPY jumping 3%-ish on the heels of the French election results and as Asia-based FX traders told Bloomberg, “investors have either written a check or are still sitting short.”
- Short-term accounts who have been cut well away from their stop levels seen reloading shorts
- Clients were advised of this type of execution scenario last week
- EUR/JPY up 2.9% to 120.46, dealt as high as 120.91 after closing at 116.94 on Friday
- Fund related bids said appearing near 120.00
Meanwhile, hedge funds were seen fading EURUSD gains above 1.0900, but “have more offers in place at 1.0975 and north of 1.1000,” traders and sales personnel in London said.
Apparently, there were some folks manning London desks on an emergency basis.