EUR: Euro-dollar ground higher in a light Asian session and recovered to $1.3050, some say the move was attributed to a positive result by Spain’s ruling popular party in the weekend’s elections in Galicia, others, the $1bln option strike at $1.3050 for today’s NY cut. Early support from Model names failed to lift euro-dollar in light European trade, the rate met resistance and eased to $1.3040. The pair extended losses to print $1.3026 before dip demand recovered as traders focused on the earlier mentioned $1.3050 option expiry. Risk appetite increased and euro-dollar last traded around $1.3058. With the Lack of data release in the US today, range trade expected in headline driven markets. The Asian high seen capping moves on the topside at $1.3066. Through here opens techs at $1.3072 (5 Oct high), ahead of offers into $1.3080.
GBP:Opened early Europe at $1.6035 and stg0.8140, GBP opened heavy in Asia and made a show back under $1.6000 to $1.5991, where the rate met support in the dip and bounced to opening levels. The pair extended recovery pullback efforts on broad dollar weakness across the board to $1.6033. Euro-sterling lifted in tandem with euro-dollar to print stg0.8148, where the rate met resistance ahead of the stg0.8150 barrier. Cable opened flat in Europe with trade tied to a narrow $1.6026-40 range. Risk appetite increased and the pair headed higher with euro-dollar through resistance to $1.6052, later easing on profit take sales. The 5 dma at $1.6066 seen capping moves on the topside, a break opens offers into $1.6080. Euro-sterling extended losses in thin trade to stg0.8124, before support in the dip recovered to stg0.8138.
JPY: Opened in early Europe at Y79.58 and Y103.87, Dollar-yen opened flat in Asia, release of weaker than expected Japan trade data failed to inspire and the pair continued in a tight range. Market talk the BOJ may loosen monetary supply boosted the dollar to
Y79.40. Rate extended gains through the 200 dma and Y79.50 barrier, flushing stops to print highs ofY79.63. Dollar-yen consolidated overnight gains on early hedge fund demand, comments from S&P that said may cut Japan ratings if debt trend stays on current course added sentiment. The pair extended gains on French name demand to Y79.87 and remains buoyant ahead of NY. Euro-yen opened heavy in Asia and slipped to Y103.13, before finding support in the dip and a slow grind higher to Y103.50. The cross tracked late demand in dollar-yen to make a show above Y104.00 and print Y104.02, before profit take sales eased. Euro-yen tracked strong dollar moves in Europe and extended above Y104.00 to fresh 5 1/2 month highs of Y104.29. Resistance seen at Y104.44 (8 May high), ahead of strong offers into Y104.50.
EasyForexNews Research Team