Bulgarian Lev, Overnight rates LEONIA currently trade negative 0.08 while main money market rates SOFIBID and SIFIBOR also trade negative at minus 0.297 and minus 0.040. Money markets contain a full 26 BPS spread, 5 BPS from LEONIA to SOFIBOR and 22 BPS from LEONIA to SIFIBID.
USD/BGN. From current 1.7736, vital point breaks are located at 1.7740 and 1.7969. Long term USD/BGN is overbought. EUR/BGN from Current 1.9558 sits dead on support at 1.9558.
USD/BRL. From current 3.9473 trades at lifetime highs and is wildly overbought as has been the case for many years. Intraday USD/BRL is oversold. Next vital points 3.9218, 3.9186. EUR/BRL from current 4.3527 next vital points 4.2669 and 4.3245. A giant move is in the works for EUR/BRL as pure noise is located in current prices.
USD/HRK. Croatia Kuna. Current money market rates trade 0.30 – -0.28 on heavy volume. Fitch, Noody’s and S&P’s downgraded Croatia foreign and domestic currencies on Negative watch list at BB ratings. USD/HRK from current 6.9121, next vital points 7.0167 and 6.9189. Currently, overbought. EUR/HRK from current 7.6220, next vital points 7.6371 and 7.6276.
USD/IDR. From current 13410.50 and overbought, next 13748.97 and 13633.49. EUR/IDR from current 14767.76, next points 14967.07 and 15033.08.
USD/ILS. From current 3.9008, next vitals 3.9071 and 3.9030. The Shekel sits comfortable above 3.7119. A big move is in the works for ILS as its current price is pure noise. EUR/ILS from current 4.3015, next 4.2536 and 4.3037 and above 4.7393.
Brian Twomey, Inside the Currency Market, btwomey.com