GBP: Opened early Europe at $1.5725, stg0.7860, GBP closed in NY at $1.5711, having recovered off NY lows of $1.5683 (saw $1.5678 earlier in Asia). Rate initially dipped to mark early Asia lows at $1.5705 before edging higher, the move up aided by a boosted risk appetite led by Aussie following the release of RBA Minutes. Rate pushed up to $1.5720, tested the break of the 200-dma line at $1.5716 before extending to $1.5730. Rate retained a firm tone into Europe, the eventual break of $1.5730 propelling the rate to challenge stronger resistance around $1.5750. Move stalled here, allowing euro-sterling to track euro-dollar’s stronger recovery, the cross moving on to stg0.7881 before it too stalled. Clear of $1.5750 saw cable target stops at $1.5770, the break here taking rate on to $1.5779 before momentum faltered. Rate eased to $1.5762 ahead of UK public finances data release, though the surprise deficit having only a minimal negative effect leaving rate to hold close to highs ahead of the NY open. Euro-sterling eased to stg0.7870 in late morning trade.
EUR: Opened early Europe at $1.2360, Euro-dollar closed in NY at $1.2347, after rate had recovered from lows of $1.2295 to $1.2352. Rate initially marked lows at $1.2342 in early Asia before edging to an early high of $1.2355. Rate dipped to $1.2347
before stepping its way to an eventual high of $1.2361 ahead of the European open. Traders reported that risk appetite retained a firm tone in Asia, led by Aussie as it gained ground following the release of RBA Minutes showing less concern about Aussie strength than the recent Treasury report. This positive risk outlook was further boosted into Europe by a Telegraph press report that reignited the weekend Der Spiegel story on ECB yield capping. Early demand cleared offers to $1.2372 before targeting stops above $1.2390. The break here provided the momentum to take the rate on to an eventual high of $1.2419. Decent offers to $1.2425 countered, tech 4-day rising channel top also provided resistance, with a few traders looking to fade this current rally. Stronger offers remain between $1.2440/50. Support $1.2360.
JPY: Opened in early Europe at Y79.29 and Y97.99, Dollar-yen headed lower to Y79.32 in early Asian trade as equity markets opened on a negative tone. Dip demand through the Tokyo fix pared early losses and the rate continued in a tight range, late exporter supply weighed to Y79.26 and the pair sat heavy ahead of Europe. Euro-yen opened at Y98.05 and with little activity traded a very tight Y97.98 – Y98.15 range. Dollar-yen continued flat into the European open before risk sentiment took hold of markets and the euro saw a broad based rally against major pairs. The dollar was dragged higher and printed Y79.46 highs, late profit take sales eased ahead of NY. Strong offers reported at Y79.50, ahead of tech resistance at Y79.51/59 (Ichimoku cloud top, 100 dma). Euro-yen held above Y98.00 amid light flow, before strong demand lifted to Y98.66, flushing stops on the move. The cross remained buoyant and consolidated gains to settle around Y98.55 in late morning trade. Tech resistance seen at Y98.76 (61.8% of July pullback), ahead of strong offers at Y99.00 with stops set.
EasyForexNews Research Team