EUR: Opened early Europe at $1.2974, Euro-dollar ground lower in early Asian trade to $1.2942 before meeting demand in the dip, the pair extended gains and rallied to $1.2976 on hopes Spain could soon request a bailout. Profit take sales pared gains and aided by supply from hot money accounts settled around $1.2960. Risk sentiment continued in early European trade and euro-dollar lifted on macro account demand, the rate extended gains to $1.3000, before running into strong offers from a reported Asian sovereign. Further demand from system funds/spec accounts aided a clean break of $1.3000, flushing large stops to print $1.3012. Rate eased ahead of the German ZEW survey, spiking on release of better than expected data to $1.3015, later slipping back through $1.3000 to settle around $1.2990. The underlying tone remains buoyant ahead of NY with stops noted on the topside at $1.3020, through here opens tech resistance at $1.0323 (Triangle trendline off Sep 17), with CTA stops on a break of $1.3025.
GBP:Opened early Europe at $1.6078 and stg0.8068, early demand in Asia lifted cable to $1.6083, before a bout of profit take sales and aided by broad dollar strength pressed to $1.6060. The rate later bounced to $1.6070 and settled in a tight range ahead of
Europe. Euro-sterling had a slow grind throughout Asia to print highs of stg0.8070 with resistance seen at stg0.8090 capping on the topside. Cable took the lead from euro-dollar strength and as risk appetite increased lifted to $1.6095 in early Europe. Supply from Middle-Eastern names briefly added weight before a fresh wave of demand made a clean break of $1.6100, the rate extended to $1.6109, later paring gains to settle around $1.6090 ahead of the NY open. Strong offers reported on the topside at $1.6120/25, stops set on a break of $1.6130 ahead of techs at $1.6136/43 (21 dma, 50% of $1.6309-1.5977). Euro-sterling printed highs of stg0.8083 and consolidated gains with focus on a clean break of stg0.8100 for the next leg higher.
JPY:Opened in early Europe at Y78.88 and Y102.36, Dollar-yen opened on a bid tone in Asia around Y78.70 and ground higher through the Tokyo fix amid light flow, the rate extended gains through key tech resistance from the 100 dma/Ichimoku cloud top to print Y78.91 and remained buoyant ahead of Europe. Euro-yen opened firmer in early trade to print Y102.30, before the rate stalled and settled in a tight range. Dollar-yen lifted on the European open to Y78.94 on reported Japanese bank demand, before running into strong resistance ahead of Y79.00, the rate stalled and slipped to Y78.83. Trade was then contained in a tight 10 pip range for the remainder of the session with key focus on a clean break of Y79.00 for the next leg higher. Euro-yen largely tracked euro-dollar moves and extended gains to Y102.69, flushing stops and breaking key 4 year trendline resistance on the move. Late profit take sales eased and the cross settled around Y102.50 ahead of the NY open.
EasyForexNews Research Team