EUR: Opened early Europe at $1.2985, Euro-dollar closed in NY at $1.2968 after recovering off lows at $1.2920 to $1.2974. Recovery extended in early Asia with rate edging to an early high of $1.2980. Sales of euro-yen knocked rate back to $1.2963 before meeting fresh demand that based the move before allowing it to recover, pushing on to $1.2992 ahead of the European open. Firm tone rolled over into Europe with macro buyers nudging rate on to $1.3004 before reported offers between $1.3005/25 countered. Rate drifted lower before getting a heavy knock down to $1.2956 on a mix of bond related and Swiss supply. Rate recovered to $1.3065 and settled for a while before strong middle east demand hit the market, spiking the rate above $1.3000, with triggered stops through $1.3010 taking it on to an eventual high of $1.3048 ($1.3047 61.8% $1.3173-1.2920). Upside momentum faded which attracted some tentative short selling though rate continues to soak up supply. Traders have mentioned that decent sized sell interest has been seen building now from $1.3050 up to $1.3100.
GBP: Opened early Europe at $1.6252 and stg0.7989, GBP closed in NY at $1.6215 after extending its recovery off intraday lows of $1.6164 to $1.6219 ahead of the close. Rate touched an early low at $1.6214 before tracking euro-dollar higher, the rate pushing to an initial high of $1.6229 before momentum faded and it reversed on Japanese sales of euro-yen. Cable bounced off $1.6214 and rallied to a session high of $1.6261 ahead of Europe. Macro demand for cable provided an early extension to $1.6269 before move was met by Asian sovereign sales. Rate was pressed back to $1.6228, as early spec longs were squeezed out, but fresh demand emerged into the dip as euro-sterling eased below stg0.780. Cable recovered to $1.6250, ignored release of UK borrowing data (though disappointing) before getting a strong boost from euro-dollar’s spike back up through $1.3000. The move took cable through $1.6300, triggering the barrier here Euro-dollar stronger move lifted euro-sterling above stg0.8000, as cable eased off extended highs of $1.6310 to $1.6280 ahead of the New York open.
JPY: Opened in early Europe around Y78.18 and Y101.52, Dollar-yen closed in NY at Y78.26, the rate having remained buoyed above Y78.00 through Thursday. Rate saw lows of Y78.02 in the session before recovering as market picked up a recovering risk tone, the rate edging to a high of Y78.36. The recent rejection from Y79.22 and bounce from Y78.02 has prompted talk of a Y78.00/79.25 DNT option structure. An early dip to Y78.20 in Asia met demand which allowed rate to edge to highs of Y78.37 before momentum faded. Sales of euro-yen provided some headwinds, though supply only managed to slow a euro-dollar led euro recovery, but it weighed on dollar-yen to ease it to lows of Y78.13. Euro-yen edged from an early Asian low of Y101.45 to Y101.67, before settling around Y101.50 into Europe. Early euro demand in Europe was reversed on US and Swiss name sales which took cross to extended lows of Y101.26 but the sharp middle east driven recovery in euro-dollar spiked euro-yen to Y102.10 where it met decent supply.
EasyForexNews Research Team