USD/JPY – Still under pressure this morning after some Asian real money sales sent dollar down from Y76.82 to Y76.62. Bounces are very shallow and the market looks to be grinding lower into the reportedly very large bids sitting on machines under Y76.60, with talk that they are of semi-official flavour. EUR/JPY failure to maintain a footing above Y100.00 keeps the pressure on the pair and a break through strong offers at Y100.40/45 is required to take off some of the weight. USD trades Y76.66/68 with EUR/JPY at Y99.92/95
EUR/USD – Market awash with talk concerning the reported $1.3115 digital option interest, which is said to roll off at the NY cut. Size of the interest put at in excess of $30mln though most spoken to believe this amount to be exaggerated. However, some decent demand has been seen in the market through Asia, strong support in early trade was noted
supporting at $1.3045 before interest was pulled and rate dropped back to $1.3023, with further reports of decent demand seen into early Europe, though said to be getting well supplied. Rate trades around $1.3038.
GBP/USD – Got a quick shove up to $1.5665, as the cross was pressed down to extended lows of stg0.83165, with both rates paring sterling gains with cable currently trading back at $1.5646, euro-sterling at stg0.8334. GBP resistance seen from Tuesday’s high at $1.5672 and extending to $1.5680. EUR/GBP support now seen at stg0.8305/00.
GOLD – Spot Gold holding firm in early trade and receiving some help from safe-haven demand as traders watch developments in the Arabian Gulf, which in turn is keeping WTI and Brent Crude on a firm footing. The metal is currently back above $1600 after an overnight high of around $1608.65and faces interim resistance towards $1614. Gold curently trades around $1604.
EasyForexNews Research Team