GBP: Opened early Europe at $1.5872, stg0.7921, GBP opened in Asia at $1.5875 and ground lower in tandem with euro-dollar to print $1.5850, later recovering on dip demand as traders reported of thin volumes. Euro-sterling was confined to a tight stg0.7920-0.7930 range in Asia with dealers on the sidelines due to the US holiday. Cable tracked early euro-dollar slippage to $1.5858, before dip demand recovered to settle in a tight range ahead of the UK mfg PMI. Rate spiked to $1.5999 on release of better than expected data which came in at 49.5 in Aug vs revised 45.2 in July. Profit take sales eased to $1.5880 and the rate remained in consolidation mode. Strong offers reported into $1.5900 ahead of tech resistance at $1.5908/13 (61.8% retracement of May/Jun decline, 23 Aug high). Support seen at $1.5853/51 (European/Asian lows), ahead of $1.5834 (5 dma). Euro-sterling slipped to stg0.7907, the move cushioned by demand from the Asian intraday low and lifted to stg0.7912.
EUR: Opened early Europe at $1.2573, Euro-dollar opened in Asia at $1.2580 and was pulled lower by the aussie to $1.2560 following weekend’s PMI data out of China, the move was however cushioned by demand in euro-aussie. The pair bounced to $1.2580 and consolidated in a tight range with markets expected quiet due to Labor day in the US. Euro-dollar ground lower on the European open to $1.2563 where demand in the dip recovered, the pair extended gains and was given a boost to $1.2580 on release of better than expected Spanish mfg PMI data. Rate printed highs of $1.2585, before profit take sales eased amid light flow. Decent eurozone mfg PMI consolidated gains and the rate continued in a tight trading range. Support seen on the downside at $1.2563/60 (European/Asian lows), ahead of bids at $1.2555/50 ($1.2552 – 5 dma). Tech resistance seen at $1.2578/86 from the 100 dma, European high, a break to corporate offers at $1.2595/00.
JPY: Opened in early Europe at Y78.28 and Y98.44, Dollar-yen opened in Asia around Y78.30 and was dragged lower to Y78.19 on supply from Japanese name accounts in aussie-yen. The pair bounced to Y78.30 and consolidated gains to settle in a tight range ahead of Europe. Euro-yen tracked the early dollar move in Asia and pressed to Y98.22, before demand in euro-aussie aided the recovery to Y98.50. Dollar-yen traded a tight Y78.27 – Y78.40 European range with little to excite. Rate extended the recovery pullback off early Asian lows to Y78.40, before meeting resistance and easing to Y78.35. Through here and strong offers reported at Y78.50 (Y78.51 – 5 dma), more behind at Y78.60 with stops set on a break. Support seen at Y78.19 from the Asian low, ahead of demand from semi-officials at Y78.10/00 (Y78.04 – Support line from 1 Jun). Euro-yen mirrored the dollar and lifted to Y98.64, later easing on profit take sales to Y98.50. Tech support seen at Y98.25/21 (Ichimoku cloud top, Asian low) with stops set through Y98.10.
EasyForexNews Research Team