EUR: Opened early Europe at $1.3050, Euro-dollar opened on a bid tone in early Asia and lifted to $1.3076 after the Spanish election results indicated support for PM Rajoy’s austerity policies, some see this as hope the government may request a bailout. Strong demand in the crosses particularly in euro-sterling and euro-yen also attributed to the move. Rate met resistance and profit take sales eased to settle around $1.3055. Euro-dollar ground lower in early European trade, the rate briefly stalled at $1.3045 on Swiss name demand before cross supply added further weight. Market sentiment turned, equities headed lower and the rate slipped to $1.3021 where the pair met support from the 200 – hour moving average, later bouncing to settle around $1.3035. A break here on the downside opens strong demand into $1.3005/00 with large stops set on a break. Light data release in the US today with highlights from the Ricmond Fed Report, released at 1400GMT.
GBP: Opened early Europe at $1.6014 and stg0.8151, GBP lifted with euro-dollar to $1.6024 as risk sentiment increased in early Asia, before profit take supply pared gains and the rate settled in a tight range. Cross demand led the charge in early Asia and euro-sterling printed highs of stg0.81609, before meeting resistance and easing back in tandem with euro-dollar to hold above stg0.8150. Cable opened heavy in Europe and tracked euro-dollar slippage, the rate extended losses through $1.6000 to $1.5997, before finding support in the dip from Retail name bids. Swiss name demand gave a further boost to $1.6021, later easing to $1.6007. On the downside tech support seen at $1.5984/77 (55 dma, 9 & 10 Oct lows), ahead of $1.5967/60 (61.8% of 28 Aug rally, 38.2% of Jun/Sep). The Asian high seen capping moves on the topside at $1.6024, ahead of offers into $1.6040. Euro-sterling slipped to stg0.8136, before finding support and bouncing to stg0.8142.
JPY: Opened in early Europe at Y79.90 and Y104.27, Dollar-yen extended gains in early Asia and cleared the Y80.00 barrier on news reports that the Japanese government is asking BOJ to increase the asset buying program by Y20tln. The rate printed Y80.02 before meeting strong resistance from Asian reserve managers/exporters, sending the pair back to Y79.85. A statement from Japan FinMin Jojima that said there was no truth in the earlier mentioned media reports also attributed to the move. Euro-yen continued firmer on the early dollar move to Y104.59, before running into strong exporter offers. Dollar-yen extended the corrective pullback off earlier highs with a slow grind lower throughout the European session. Profit take sales were prevalent as the rate slipped to Y79.72, before finding support and recovering to Y79.85. Euro-yen opened heavy in Europe and pressed lower in tandem with euro-dollar through Y104.00 support to print lows of Y103.83. Dip demand recovered and the cross settled around Y104.10 ahead of NY.
EasyForexNews Research Team