EUR: Opened early Europe at $1.2947, Euro-dollar closed in NY Friday at $1.2980, opening Asia unchanged before edging up to mark session highs at $1.2990 in opening trade. Rate reversed off highs as Asian equity markets opened with a negative tone leading the way into general risk aversion. Euro-dollar challenged the $1.2966/65 area where it met decent support, giving way on a third test as market targeted reported stops below $1.2950. Stops provided the weight to extend lows to $1.2928 before it settled around $1.2950 ahead of Europe. Early sales into Europe squeezed rate down to $1.2930 before strong demand emerged from Asian names and models which spiked it to $1.2972. Move above $1.2970 met headwinds with rate easing to $1.2964. Rumour of soft Ifo data eased rate to $1.2954 with release confirming this talk which dropped rate to $1.2928 where it met profit take demand. Second wave sales took rate through this level then $1.2920. Triggered stops here extended move to $1.2897 despite talk of reserve name demand. Recovery efforts remained laboured ahead of the New York open.
GBP: Opened early Europe at $1.6215 and stg0.7985, GBP closed in NY Friday at $1.6230, trading off earlier posted highs of $1.6310 (fresh 2012 high) as rate tracked euro-dollar’s deeper corrective pullback. Rate touched an early high at $1.6250 into early Asia before risk aversion began to weigh back, based off the weak opening in Asian equity markets. Rate stepped its way to an eventual low of $1.6199 (76.4% $1.6164-1.6310) where it met decent demand which cushioned, then reversed the move. Rate recovered, meeting resistance around the $1.6220 level. Euro-sterling trade in Asia was contained within stg0.7980/95. Cable eased to $1.6209 in early Europe only to rally back to $1.6244 as it tracked euro-dollar’s recovery. Rate drifted off this area, the move down gaining pace as euro-dollar dropped on weak Ifo data. Euro-sterling diverted some of the initial pressure, easing to stg0.79545, but support into stg0.7950 allowed cable to catch up, eased through $1.6200 as the cross edged higher. Cable touched a low at $1.6189 before edging back to $1.6210 ahead of the 1000GMT fix.
JPY: Opened in early Europe at Y78.04 and Y101.02, Aussie-yen sales in Asia were cited for placing downside pressure on dollar-yen, the move down added weight to reported option barrier interest at Y78.00 and provided a soft tone for yen pairs in general. Strong demand thwarted efforts to take rate below the figure with short covering by specs edged the rate back to Y78.15. Euro-yen closed in NY at Y101.50 and eased to overnight lows of Y100.87. Dollar yen opened flat in Europe around Y78.08 with trade stuck in a tight range, before grinding lower on cross slippage following release of soft German IFO data. Rate extended losses through the reported barrier and triggered stops to print Y77.95 and sit heavy ahead of NY. Euro-yen lifted to Y101.28 in early trade before tracking euro-dollar slippage on market rumours of weak German IFO data. Rate extended losses on release and flushed stops to print lows of Y100.60, later bouncing to Y100.70 and settle in a tight range. Recovery attempts seen shallow with decent support on the downside through Y100.60/50.
EasyForexNews Research Team