EUR: Opened early Europe at $1.3105, Euro-dollar had a slow grind throughout Asia and slipped on cross sales ahead of the Tokyo fix to $1.3105, rate extended losses on hot money supply and flushed light stops through $1.3100 to print lows of $1.3088. Dip demand briefly recovered as traders squared positions ahead of the EU leaders summit. Euro-dollar opened European trade on a bid tone and lifted to $1.3120, before profit take sales eased off highs. Comments from EU Rehn and Merkel started to hit newswires but didn’t provide markets with any added stimulus. The pair eased further through $1.3100 to print $1.3083 as traders continued to play the tight ranges. Dip demand led recovery attempts and aided by well received Spanish/French auctions pared earlier losses. Late demand from real money extended to $1.3120 ahead of NY as focus turns to headlines/news from the EU summit. On the topside tech resistance seen at $1.3145 (76.4% of this year’s move $1.3486-1.2042), ahead of strong offers into $1.3150 with stops set.
GBP: Opened early Europe at $1.6126 and stg0.8126, broad dollar demand was seen across the board in early Asia and cable like euro-dollar had a slow grind lower throughout the session. The rate slipped to print lows of $1.6124 and settled in a tight range as traders squared positions ahead of today’s EU summit. Euro-sterling was tied to a tight Asian range, before sharp cross sales pressed to stg0.8116 where the rate met support ahead of the 200 dma (stg0.81116), and recovered to stg0.8120. Cable largely tracked euro-dollar moves in early Europe, the rate lifted to $1.6146, before slipping to $1.6116 as traders played the ranges. Demand picked up ahead of UK Retail Sales and on release of better than expected data spiked to $1.6159. Cable consolidated gains, before a fresh wave of demand extended to $1.6171 where the rate met 21 Sep resistance line and eased to $1.6155. Euro-sterling slipped through the 200dma but found support at stg0.8110, later settling around stg0.8115.
JPY:Opened in early Europe at Y79.13 and Y103.71, dollar demand in early Asia lifted the pair back through Y79.00 and extended to Y79.20, strong resistance from exporters capped moves and the rate eased to settle around Y79.10. Euro-yen ground lower in early Asia before lifting in tandem with dollar-yen through the Tokyo fix. The cross extended gains to Y103.85, where the rate met resistance from the 17 Sep high and eased to Y103.55, profit take sales also added weight. Dollar-yen headed lower in early Europe and made a show under Y79.00, before macro demand and aided by a bounce in euro-dollar recovered to opening levels. Dollar extended gains through the overnight high on sharp aussie-yen demand to print Y79.27 and remains buoyant ahead of NY. A break of the 200 dma at Y79.41 seen as key for the next leg higher, traders say. Euro-yen largely tracked dollar moves, slipping in early Europe to Y103.37, before extending through the Y104.00 barrier to recovery pullback highs of Y104.07.
EasyForexNews Research Team