European Session: Orders and Options Watch

EUR: Although the single currency rose to 1.3072, price turned south from there since New York on Friday and continued to fall today in thin market (Japan and U.S. closed for holidays), bids at 1.2990-00 were filled and stops at 1.2970 were tripped, however, some bids are still noted at 1.2950-60 and further out at 1.2900 with more stops building up below 1.2900 and 1.2870. On the upside, light offers are tipped at 1.2995-00 and also at 1.3030-40, followed by combination of offers and stops located at 1.3070-80 but fresh selling interest are expected further out at 1.3090-00 with bigger stops placed above there. 

GBP: The British pound also dropped sharply from Friday's high of 1.6218 continued to keep cable under pressure today, stops at 1.6120 were tripped and bids at 1.6090-00 were also filled, however, some buy orders from Asian and Middle East names are still noted at 1.6050-60 and further out at 1.6010-20. On the upside, offers are lowered to 1.6110-20 and also at 1.6140-50 with some stops expected above latter level but fresh selling interest should emerge around 1.6170-80 and bigger sell orders are reported at 1.6200-20 region with sizeable stops placed above there. 

CHF: The greenback found good support at 0.9276 on Friday and staged a strong rebound from there in part due to the release of better-than-expected U.S. unemployment rate, offers at 0.9320-30 were absorbed and stops above 0.9340 were triggered, however, fresh sell orders should emerge around 0.9365-70 and also 0.9390-95, combination of offers and stops in good size is located around 0.9400-10. On the downside, light bids are noted at 0.9310-20 and decent demand remain at 0.9270-80 with stops building up below there and 0.9240-50 (some bids above). 

JPY: Despite rising brief to 78.88 on Friday, the pair met heavy offers today at 78.75-80 and dropped quite sharply in Asia and European morning on cross-trading, stops below 78.25 are in focus but some bids are still noted at 78.00-10 and further out at 77.85-90 with more stops placed below 77.70-75 but demand from semi-official names should emerge above 77.44. On the upside, said offers remain at 78.75-80 and selling interests from exporters are expected at 78.95-00 with more stops placed above 79.10, followed by combination of offers and stops at 79.20-30.