Not much action in anything overnight and the market should stay very quiet until Chinese trade data later today. Dealers say that order books are relatively free of close-by stop-loss orders, another sign that volatility will stay low.
Obviously there will be plenty of speculators looking to sell any rallies back towards previous 1.0220 lows but the fact that the market hasn’t really fallen heavily (plus the big bounce in AUD/NZD) leads me to think that we bears should be a bit more careful in picking our entry levels. Corporate offers are expected to be lowered to around 1.0250 so I would look to sell near there initially.
Bulls have an obvious support level at the March lows near 1.0115 and Sovereign bids are also expected near there.