Published at 01:02 (GMT) 22 Oct

GBPUSD

Looks like the EUR's headway has not translated completely to USD/SGD retreats. The latter has found bids at around 1.3900-levels and is now being bid back up towards 1.3910+ levels. Meanwhile the opening weakness in the USD/MYR has come to a stall at ahead of the 3.3650 handle. While US names which were on the bid for EUR, AUD and Cable looks like a recipe for USD/SGD and USD/MYR bearishness, this does not seem to be an effortless transition. Intervention threat is one factor driving the stall while some profit-taking in Majors rally is another. We also note that there are on-going fund redemption concerns sparked off by Galleon's case -and redemption of Asian funds is one of the issues that could be adding to the paying interest on USD/SGD weakness. For now, price action is expected to be a two-way street still and choppy trades can be expected. VV