EUR: Opened early Europe at $1.2930, risk appetite increased in early Asian trade, the rate headed higher and extended recovery attempts to $1.2956. Sharp cross sales after the Tokyo fix pared light gains and the rate eased to $1.2935 ahead of Europe. Euro-dollar squeezed to $1.2916 in early trade, before the rate found support and recovered to opening levels, Asian prop accounts reported behind the move. Narrow range trade continued before a fresh wave of demand extended to $1.2950 ahead of NY. The Asian high seen capping moves on the topside at $1.2956, through here opens $1.2969 (21 dma), ahead of $1.2975/80 ($1.2978 – 5 dma). Traders look to release of US GDP data at 1230GMT which is expected to show growth of just under 2.0%. Even meeting expectations would likely come as a relief to markets, after the third estimate of the last quarter’s figure showed a surprisingly low 1.3% growth rate.
GBP: Opened early Europe at $1.6106 and stg0.8026, after a quiet start to Asian trade cable picked up momentum and lifted in tandem with euro-dollar to highs of $1.6133. Market sentiment turned and the pair eased to $1.6120 as equities headed lower and cross sales weighed heavily on markets, later extending losses to $1.6106. Support ahead of $1.6100 helped recovery attempts and cable settled in a tight range into the European open. Early demand in Asia lifted euro-sterling off NY lows, where the pair consolidated in a tight stg0.8024-8032 range. Cable opened on a soft tone in Europe and made a show under $1.6100 on early euro-dollar slippage, dip demand lifted off the low and recovery attempts extended to $1.6120. The pair consolidated gains and ground to $1.6129, but found resistance from the Asian high ($1.6032) hard to break, later easing to $1.6120. Euro-sterling sat mid-range at stg0.8027, the rate eased off earlier highs of stg0.8033.
JPY: Opened in early Europe at Y80.05 and Y103.51, Dollar-yen ground higher in early Asia to Y80.38, before meeting strong supply from Japanese banks, US name sales added weight and the pair eased to Y80.17. Demand ahead of the Tokyo fix was met by sharp cross sales and dollar extended losses to Y80.10. Early demand lifted euro-yen above Y104.00, before falling in tandem with the dollar after the Tokyo fix. Cross sales weighed in afternoon dealings to Y103.50 and the pair sat heavy ahead of Europe. Dollar-yen opened on a soft tone in Europe and made a show under Y80.00, extending losses to Y79.84. The rate bounced ahead of Y79.80 support and extended recovery attempts to Y79.95. A break on the downside opens bids at Y79.70, ahead of techs at Y79.66 (Aug high) and Y79.50 (200 dma). Euro-yen tracked dollar moves on mild risk aversion to Y103.20, the rate later bounced to Y103.60, before easing to Y103.40 ahead of NY.
EasyForexNews Research Team