EUR: Opened early Europe at $1.2937, Euro-dollar closed in NY at $1.2905 after rate had pulled back from session highs at $1.2971 to $1.2897 as it tracked the negative reversal on Wall St, as well as reaction to anti-austerity protests in Spain. Rate pivoted $1.2900 in early Asian trade, edging to highs at $1.2913 before turning lower on reported euro-yen sales. Traders that took long positions ahead of reported strong demand at $1.2890, placed stops below $1.2885. These stops were triggered as a major US name sold from above $1.2900. The added weight took rate down to lows of $1.2864 before meeting demand that cushioned. Recovery efforts remained shallow ahead of the European open. Fresh selling emerged into Europe, taking the rate to extended lows of $1.2857. Prop demand allowed for a recovery to $1.2875/80 before rate dropped to $1.2847 on Bank of Spain comment on Q3 growth. French demand off the lows prompted speculation of mid east demand though this was not confirmed. Resistance between $1.2875/80 was again seen providing headwinds into late morning recovery.
GBP: Opened early Europe at $1.6167 and stg0.7962, GBP closed in NY at $1.6196 after pulling back from a late recovery high at $1.6262 (had seen decreasing highs of $1.6267 and $1.6264 during the session) to a session low of $1.6181. Move saw euro-sterling extend recovery off European morning lows of stg0.7936 to stg0.79855. Cable stepped its way to an early recovery high of $1.6209 in Asia before it turned lower. Euro-yen sales, as well as a corrective pullback in Aussie and Kiwi, provided a fresh risk aversion tone which weighed, taking rate back around $1.6200. Strong sales of euro-dollar took cable down with it, the rate breaking below its Sep20 low at $1.6164, with triggered stops below $1.6160 extending move to $1.6150. Profit take demand greeted the dip, with rate trading around $1.6170 into early Europe. Euro-sterling traded between stg0.79565-0.7970 in Asia. Continued pressure on the euro saw cross extend pullback to stg0.79485, the move providing cable added buoyancy as it held above overnight lows with rate able to recover above $1.6200 late morning.
JPY: Opened in early Europe at Y77.71 and Y100.00 Opened in Asia at Y77.77 and ground lower in thin trade, before strong cross yen demand lifted the pair through the Tokyo fix to Y77.82. The dollar was unable to consolidate gains, sentiment faded and Japanese name supply added weight to close around Y77.70. Euro-yen opened at Y100.35 and after early slippage led the charge higher through the fix to print Y100.46. Euro-dollar falls on concerns over Spain triggered stops through $1.2890, the cross tracked the move flushing stops through Y100.00 to Y99.98. Early dollar demand lifted to Y77.75 on the European open, before heading lower on sharp cross supply. Rate extended losses to Y77.59 on headlines from the Bank of Spain that suggested GDP had continued to fall at a significant rate in Q3. The dollar bounced off lows, however focus remains on the downside and a break of Y77.50 could open the door for BOJ intervention, traders say. The cross largely tracked dollar-yen moves, flushing stops to print lows of Y99.71, before recovering with euro-dollar to Y100.05.
EasyForexNews Research Team