GBP: Opened early Europe at $1.5902, stg0.7926, GBP closed in NY at $1.5902 having pulled back from a session high of $1.5934. Rate was squeezed to an extended low of $1.5892 as rate took direction from euro-dollar, which in turn reacted to the Aussie sell off following release of Australian jobs data. The bounce back in Aussie took cable to $1.5907 before rate settled around $1.5900 into Europe. Fairly subdued trading in Asia as markets were awaiting today’s key ECB rate decision/Draghi press conference (1145GMT/1230GMT). Cable continued to take direction from euro-dollar moves into Europe, with euro-sterling holding within an outside range of stg0.7880-0.7960, the Asian range overnight contained by stg0.79205-0.79345, Europe extending topside to stg0.79395. Cable edged to a European morning high of $1.5916, trade through the balance of the morning contained by $1.5903/14. UK BOE rate decision at 1100GMT not expected to produce a change in rates or QE, with most attention on the ECB rate decision and press conference (1145GMT/1230GMT) for direction.
EUR: Opened early Europe at $1.2605, Euro-dollar closed in NY at $1.2600 after settling back from a recovery high of $1.2625, seen as rate reacted to source reports concerning today’s ECB announcement on its much anticipated bond buying programme. Trade through Asia was described as subdued with today’s ECB meeting in view. Trade in Aussie provided the main directional impetus, the initial downside reaction to the release of Australian jobs data saw euro-dollar track the Aussie move, trading down to $1.2593 before a rebound in the Aussie bounced rate back up to $1.2621. Rate then drifted lower, settling around $1.2600 ahead of the European open. Rate picked up a bid tone into early Europe, the move filling offers above $1.2620 before touching $1.2631. Pull back to $1.2602 met willing buyers, a general risk appetite providing the lift to take rate on to $1.2635 before momentum faded ahead of Friday’s $1.2638 high. UK clearer sales was reported weighing against the move up, sales taking the rate back to $1.2606 but buyers were moving in again. ECB 1145GMT, Draghi at 1230GMT.
JPY: Opened in early Europe at Y78.42 and Y98.88, Dollar-yen extended gains in early Asia ahead of the Tokyo fix to Y78.47, before a spike in the aussie on release of positive jobs data weighed to Y78.38. Trade was then contained in a tight range ahead of Europe as focus turns to Friday’s US Non-Farm Payroll data. Euro-yen traded a narrow Y98.76 – Y98.93 Asian range with very little action to excite the pair as dealers focus on todays ECB meeting. Light trade continued in Europe with dollar-yen stuck in a tight Y78.37 – Y78.48 range. Offers reported at Y78.50/55, more behind at Y78.60 with stops set, ahead of techs at Y78.70 from the 21 dma. Bids seen at Y78.20/15, more from semi-officials at Y78.10/00. The cross continued in consolidation mode and some early demand lifted through resistance to Y99.02. Profit take sales weighed before fresh demand tracked euro-dollar back through Y99.00 to highs of Y99.09, later easing to Y98.95 and settle ahead of NY. stops noted through Y99.20/30 ahead of offers at Y99.45/50. Tech support seen at Y98.67 from the 5 dma.
EasyForexNews Research Team