EUR: Opened early Europe at $1.2927, Euro-dollar closed in NY Friday at $1.2945 after recovering off a session low of $1.2890, the rate bouncing to $1.2956 before easing to $1.2923 ahead of the close. Early Swiss demand into Asian trade Monday took rate to an early high of $1.2972 after stops above $1.2960 were triggered. Decent offers between $1.2970/80 acted to prevent further advance with rate then drifting lower, touching an eventual low of $1.2915 ahead of the European open. Rate retained a heavy tone into early Europe with rate easing down to challenge reported demand in the area between $1.2910/00. Weaker than expected Spanish retail sales data, leading to wider spreads, acted to take rate below the figure, the move extending to $1.2887 as stops were triggered. However, rate held wary of testing stronger support between $1.2885/80, the rate settling back above $1.2900 for the balance of the session in an otherwise lacklustre morning. Precautionary closing of the main banking area of lower Manhattan ahead of Hurricane Sandy to impact trade in the US.
GBP: Opened early Europe at $1.6084 and stg0.8037, GBP closed in NY Friday at $1.6115 after recovering from a pullback low of $1.6081 to a late recovery high of $1.6124. Rate retested that recovery high into early Asian dealing before it turned lower, settling
between $1.6070/85 through the main part of the overnight session, trading around $1.6085 into early Europe. Euro-sterling was contained in Asia within a tight stg0.8033/43 range leaving cable to take direction from euro-dollar moves. Cable came under pressure into early Europe, the rate breaking below the overnight $1.6070 base to extend lows to $1.6058. The move trailed euro-dollar slippage allowing the cross to extend its trade base to stg0.8024, but euro-dollar recovery also left cable in its wake and allowed the cross to edge back to stg0.8033. Cable was holding just off lows ahead of the NY open. Release of UK mortgage data had little effect on FX, with key PMI data later in the week seen as key for next direction. Hurricane Sandy to hit the East coast of the US sometime today to subdue trade through the NY session.
JPY: Opened in early Europe at Y79.71 and Y103.02, Dollar-yen Opened in Asia at Y79.75 where the rate met exporter supply and eased to Y79.65 ahead of tomorrows BOJ meeting, where markets expect the central bank to add Y10tln to its assest purchase program. Demand from Japanese names ahead of the Tokyo fix recovered to re-test intraday highs, before the pair tracked cross supply and ground lower to settle in a tight range. Euro-yen printed highs of Y103.16 through the fix, before supply added weight and slipped back under Y103.00 ahead of Europe. Dollar-yen ground lower in early Europe to Y79.54 but found support ahead of the 200 dma (Y79.51) and recovered to opening levels. Cross supply pared gains and dollar slipped to Y79.58 with a quiet afternoon expected due to US markets closed for Hurricane Sandy. On the downside stops noted on a break of Y79.45, ahead of techs at Y79.40 (23.6% of Sep/Oct rally). Stops triggered on the break of $1.2900 in euro-dollar added weight to the cross in early trade, printing lows of Y102.52, later bouncing to settle around Y102.65.
EasyForexNews Research Team