EUR/USD sees pop in Asia as risk sentiment improves

EUR/USD sits up at 1.2795 having closed out last week down around 1.2680. The euro has garnered a decent lift from improved risk sentiment in the wake of the Basel 111 agreement and strong Chinese data releases.

Asian stocks have made ground and European stocks look set to trade appreciably firmer. FTSE 100 seen up around 1%, DAX 30 up around 0.7% and CAC 40 up around 0.5%.

Large hedge fund reportedly seen strong buyer of EUR/USD overnight, coming in around 1.2725. Stops tripped through 1.2770 and 1.2780 on way to session high 1.2808.

Little in way of Euro zone data this morning:

06:45 GMT: French current account for July

Reports sell orders clustered up at 1.2810/20 and more at 1.2840/50. Not sure where buy stops gathered. Hopefully will find that out as morning progresses.

Swiss National Bank has been ongoing seller of EUR/USD on rallies of late, so would expect them to avail themselves of these better levels fairly soon.