Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

European morning wrap: Busy morning, choppy trade

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

Active morning.  EUR/USD marginally firmer at 1.3480 from early 1.3445.  Inbetween though we’ve been as low as 1.3429 and as high as 1.3558 in choppy trade.

News that Moody’s is reviewing Unicredit for possible downgrade put the single currency under some early pressure.  But as European stocks rallied and periphery/German bond spreads narrowed, so EUR/USD mounted a strong rally.

Middle Eastern buying (shock horror)  was notable in the early stages of the rally. Sell orders noted up at 1.3490/00  proved sticky for awhile, but eventually trailing buy stops were tripped through 1.3500 and we quickly reached 1.3558.

Real money entered the fray as notable sellers above 1.3540 and we were soon headed lower again.  Reports Unicredit CEO is in talks with ECB certainly didn’t help matters. Model funds also notable sellers on the way back down.

Talk of barrier option interest lined up down at 1.3425 and 1.3400, sell stops below there.

Cable touch firmer at 1.5675 from early 1.5760.  Ongoing Middle Eastern sovereign buying has been a notable feature today.  

EUR/GBP up at .8543 from early .8528, having been as high as .8584 at one stage.  UK clearer with strong Asian ties decent buyer of the cross this morning.

USD/JPY effectively unchanged at 76.93.

USD/CAD slightly lower at 1.0255 from early 1.0280.  Much talk of 1.0300 barrier option interest in place.