GBP: GBP/USD Rallies on Likely Month-End Flow, Value Date Fix Incoming
Feb-26 16:00
GBP rallying well into the Wednesday WMR fix - worth recalling today is value-date month-end, so we may well be seeing some month-end rebalancing flow playing out in recent trade.
- Comfortably the best volumes of the session and, in fact, the week on the latest rally - a move that brings the 1.27 handle into play, last crossed in mid-December. This price action affirms the underlying bull cycle that's been in play for the past few weeks - making 1.2767 the next key resistance and the 50% retracement for the bear leg posted off the September high into January's lows.
- No specific newsflow or headlines behind this GBP strength - with a volume surge and month-end flows likely at play here.
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OPTIONS: Expiries for Jan28 NY cut 1000ET (Source DTCC)
Jan-27 15:38
- EUR/USD: $1.0400(E1.0bln), $1.0460($697mln), $1.0500(E1.4bln), $1.0520-30(E929mln), $1.0550(E792mln)
- AUD/USD: $0.6300-10(A$2.0bln)
US TSYS: Post-New Home Sales React
Jan-27 15:24
- Treasury futures holding near recent session lows, little reaction to better than expected new home sales for December. Still bid, futures have scaled back overnight risk-off support on weaker stocks tied to China's DeepSeek AI startup.
- Treasury Mar'25 10Y futures currently +16 at 108-31 vs. 109-12 high - just below initial technical resistance of 109-12.5 (50-day EMA).
- Cross asset comparison, stocks are weaker but well off lows (SPX Eminis -103.0 at 6029.50), Gold weaker (-27.33 at 2743.23), US$ index off lows (BBDXY +.21 at 1295.37), volatility index gaining (VIX +3.61 at 18.46).
- Focus remains on Wednesday's FOMC policy annc, as well as heavy corporate earning's docket this week.
JPY: FX Exchange Option
Jan-27 15:22
FX Exchange traded option, looking for further Yen Strength.
- JPYUSD (7th Mar) 67.5c, bought for 0.23 in 1.3k.
The underlying is at 65.175, spot is slightly lower at 0.006481.
