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European morning wrap: Busy for a Monday, as early risk appetite evaporates

|Includes: CurrencyShares Euro Trust ETF (FXE), FXF, UUP

European stocks opened nicely higher and those gains have all evaporated. Risk on, then not so much.

EUR/USD down at 1.3835 from early 1.3885, having been as high as 1.3953.  Middle Eastern buying seen early as European stocks opened sharply firmer and buy stops helped fuel rally to session high. 

Asian sovereign and BIS selling seen around the highs and as European stocks gave ground so EUR/USD  came lower. Grotty euro zone PMI data certainly didn’t help the single currency’s cause, and there is obviously still much uncertainty surrounding whats going to be put on the table this coming Wednesday.

Middle Eastern buying was again noted on the dip back below 1.3900 and it lent some support, albeit temporary. Leveraged players notable sellers in the push lower.

Cable down at 1.5925 from early 1.5960, the psychological 1.6000 proving something of a brickwall on the topside.  Talk of barrier option interest at said level. Whether it was ever taken out I couldn’t really tell ya.

USD/JPY touch lower at 76.05 from early 76.25, as US treasury yields have come lower in line with the declining risk appetite.

Talk of barrier option interest down at 75.75 and 75.50.