EUR: Opened early Europe at $1.2730, Euro-dollar closed in NY Friday at $1.2712 after rate had seen lows in this session at $1.2690 before recovering above the figure into the option cut, influenced by a large maturity at $1.2700. Rate dipped to $1.2701 in early Asian trade before picking up demand interest, the move given an added boost as the Greek parliament agreed the budget law (one of the pre-conditions set by the Troika in order to continue aid payments), the rate able to edge to a high of $1.2737 but momentum quickly faded as the short term spec driven drive met plenty of willing sellers. Rate eased to $1.2716 before picking up fresh demand which has allowed it to edge back above $1.2730 ahead of the European open. Rate dipped to $1.2726 in opening European trade only to meet middle eastern demand that drove it up to $1.2739 before momentum again faded ahead of $1.2740. Rate reversed with momentum gained as long positions were squeezed, the added weight taking rate to lows of $1.2698. Rate recovered to settle between $1.2700/20 into the morning close.
GBP: Opened early Europe at $1.5911 and stg0.8000, GBP closed in NY at $1.5896 after recovering off a session low of $1.5889. The move down Friday was seen influenced in part by euro-dollar slippage, but the announcement that the BOE would pay coupon payments over to the Treasury was seen by some as ‘back-door’ QE which provided the initial negative shove. Rate tracked early pressure on euro-dollar into Asia, the rate posting session lows at $1.5891 before recovering, the rate stepping to a session high of $1.5912 ahead of the European open. Euro-sterling traded Asia inside stg0.7997-0.8007, opening Europe just above stg0.8000. Cable nudged up to extend intraday highs to $1.5915 in opening European trade, as talk of 1100GMT LHS UK corporate interest to be seen in euro-sterling pressed the cross down to stg0.7990. Dip in the cross attracted buyers that popped rate back above stg0.8000, leaving cable to drop down to $1.5880 where it met support. Recovery above $1.5900 tracked euro-dollar as the cross was pressed lower again on positioning ahead of the 1100GMT fix.
JPY: Opened in early Europe at Y79.50 and Y101.17, Dollar-yen slipped on the Asian open to Y79.41, before meeting demand in the dip from Japanese banks. The rate extended gains through the Tokyo fix in tandem with euro-yen to print highs of Y79.56, later easing to Y79.45 ahead of Europe. Cross demand through the fix lifted euro-yen to Y101.25, before the rate eased on profit take sales to Y101.15. Dollar-yen was tied to a narrow Y79.41-51 European range with light volumes due to the US public holiday. A break on the downside opens Y79.32/28 (Kijun line, 30 Oct low), with resistance from the Asian high at Y79.58 capping moves on the topside. Euro-yen opened heavy and made a show under Y101.00, euro-dollar’s clean break of $1.2700 extended losses to lows of Y100.87. Demand in the dip led recovery attempts to Y101.10, before the pair ground to Y101.00 and sat in a tight range. A break on the downside opens techs at Y100.59 (38.2% of Jul-Oct rally), ahead of strong bids into Y100.50.
EasyForexNews Research Team