EUR/USD – Extended recovery to $1.27831, with any stops above $1.2780 triggered seen meeting profit take sell interest after the pressured move higher. Middle eastern buys cited for providing the mian demand in the move up from around $1.2750. Rate trades around $1.2774.
EUR/GBP – getting pulled higher by EUR/USD stronger recovery, as cable struggles to track the move higher (currently trading around $1.5466). The cross breaks out of its overnight Asian range of stg0.8240/51 to extend topside to stg0.8265. Offers seen into stg0.8264/70 (50%, 61.8% of the corrective pullback from stg0.8288 to stg0.8240). A break to open a move toward stg0.8277 ahead of stg0.8288.
EUR/JPY – pushed up to Y98.36 in recent trade on the back of middle eastern EUR/USD demand, but the move faltering as EUR/USD meets supply from Russian and semi-official names. Bids remain in place below at Y97.25 ahead of a reportedly very large barrier at Y97.00 with huge stops touted on a break. Rate trades back down at Y98.25/28.
EUR/PLN – Poland sold E750Mln worth of euro-denominated bonds yesterday at 237 bps above mid-swaps, with 65% sold outside of the country. All eyes today on the NBP interest rate announcement due at 1300GMT. Analysts are predicting rates to remain at 4.5%, citing a combination of EUR/PLN weakness and an increase in core inflation behind the move. The cross opened in Europe around Pln4.4590 and lifted in early trade to Pln4.4627 and flirt with the overnight Asian high, before easing to Pln4.4595 in current dealings. Support on the downside seen at Pln4.4480/70 (Pln4.4477 – 10 Jan low), stronger behind at Pln4.4410/00. Reported offers at Pln4.4720/30, ahead of Pln4.4890/00.
EUR/HUF – PM Orban’s spokesman said earlier that Hungary’s government is ready to discuss disputed legislation with the EU, adding that Hungary are open to discussions about the Central Bank law or any law if the commission finds it necessary. The HUF continues on a stronger footing and traders remain cautious with more headlines expected today from the talks in Washington with Hungary’s minister and the IMF/EU. The currency pair opened at Huf311.50 and lifted on offshore flow to Huf312.03 before easing on sharp EUR/USD gains to Huf311.10. Support seen at Huf308.80/70 (Huf308.74 – 10 Jan low), a break opens Huf305.20/10 (Huf305.10 – 27 Dec 11 low). On the topside reported offers
at Huf312.50/60, more at Huf314.30/40.
EUR/CZK – the currency pair continued on from Asia with trade seen flat around the European open Czk25.787. Dealings expected to range trade with market moves again dictated by EUR/USD and HUF moves. Support today seen at Czk25.675, ahead of Czk25.600. Reported offers at Czk25.867 (10 Jan high), a break opens stronger offers at Czk25.965 (29 Dec/05 Jan highs).
EasyForexNews Research Team