GBP: Opened in early Europe at $1.5812 and stg0.7910. Closed in NY Friday at $1.5803 having slipped off early European highs of $1.5869. Asian trade opened flat around $1.5815 before tracking early euro-dollar supply and briefly making a show under $1.5800. Dip demand recovered to $1.5810 and the pair remained in consolidation mode ahead of an expected quiet European session. Euro-sterling closed in NY Friday at stg0.7912, the rate having recovered off pullback lows of stg0.7890. Trade remained in a narrow 10 pip range overnight with lack of flow to raise sentiment. After a flat start cable was dragged higher by euro-dollar to $1.5828, before meeting tech resistance from the 5 dma and easing to $1.5820, rate extended losses and settled around $1.5810. The Asian low provides support at $1.5798, a break to demand at $1.5780. Offers seen into $1.5830 on the topside, ahead of $1.5850. Euro-sterling slipped to stg0.7901 in early trade, before lifting in tandem with euro-dollar to stg0.7922 and remain buoyant ahead of NY.
EUR: Opened in early Europe at $1.2507, spiked late in NY Friday to $1.2561 after reports that the ECB was considering zone targets for peripheral bond yields, later paring gains to close at $1.2511. Trade volumes opened light in Asia and euro-dollar ground lower to $1.2498, before meeting Japanese name demand and lifting to $1.2516. The rate eased on profit take sales to $1.2505 and settled in a tight range with markets expected quiet today due to the UK public holiday. Euro-dollar opened heavy in Europe and made a show under $1.2500 to $1.2490 in early trade. Dip demand recovered and extended gains to $1.2515 as dealers positioned ahead of the German IFO Business survey. On release, rate initially traded flat to slightly weaker than forecast data, before delayed demand lifted to $1.2534. Profit taking pared some gains as markets continued quiet ahead of the NY open. On the topside offers seen capping at $1.2550/55. Support from the European low at $1.2490, ahead of bids at $1.2480.
JPY: Opened in early Europe at Y78.75 and Y98.50, closed in NY Friday at Y78.70 having recovered off Y78.45 lows. Early support in Asia lifted dollar-yen to Y78.70, rate extended gains on Japanese bank demand ahead of the fix to Y78.84. Profit take sales eased to Y78.75 and the pair consolidated gains ahead of Europe. Euro-yen closed in NY Friday at Y98.50, the rate having recovered off Y97.98 lows. The cross mirrored dollar moves and lifted to Y98.62 on Japanese bank demand ahead of the Tokyo fix, later consolidating gains to sit in a tight 15 pip range. Dollar-yen ground lower throughout the session to Y78.65, before bouncing with the cross to Y78.70 as trade volumes remained subdued due to the UK public holiday. Support seen at Y78.50, ahead of Y78.30/25. The Asian high at Y78.84 seen capping moves on the topside, through here and expect supply from exporters for month end flow. The cross mirrored euro-dollar and slipped to Y98.32, before dip demand recovered and extended to Y98.64 following release of German IFO data, later settling around Y98.55.
EasyForexNews Research Team