EUR: Opened early Europe at $1.2688, volumes remained light around the Asian open as specs headed for dollar safety. Early sales from Macro/Japanese names pressed under $1.2700, cross supply added further weight and the pair flushed stops to $1.2675 on headlines from European officials. It emerged that there was no early deal to disburse the latest Greek aid payment, the comments also showed a difference of opinion between Juncker and Lagarde. Euro-dollar later recovered to $1.2685 ahead of the European open. Early demand briefly lifted to $1.2695, before risk aversion took hold of markets and aided by a negative start in European equities the pair reversed to $1.2665. Demand in the dip led recovery efforts and the rate settled in a tight range as focus turned to the German ZEW survey. On release of much weaker than expected data euro-dollar slipped to fresh 2 month lows of $1.2662. Late trade saw the rate bounce to $1.2670 with key support on the downside at $1.2641 from the 100 dma.
GBP: Opened early Europe at $1.5869 and stg0.7995, opened in Asia at $1.5875 and ground lower in tandem with euro-dollar to $1.5860 following comments from European officials that underlined there was no early deal to disburse the latest Greek aid payment. Trade continued flat tied to a narrow range, late supply pressed to $1.5858 where the rate found support ahead of $1.5850 and recovered to $1.5870. Euro-sterling made a show back under stg0.8000 on the Greek news to stg0.7988 and sat heavy into Europe. Cable opened flat with trade tied to a narrow 10 pip range. As focus turned to UK inflation data the pair lifted to $1.5882 on market talk of a positive number. Cable spiked to $1.5904 on release of much stronger than expected data, later easing on profit take sales. Tech resistance at $1.5912 (38.2% of $1.5269-1.6309) seen capping moveson the topside, a break opens $1.5923 (5 dma). Euro-sterling extended losses to fresh 6 week lows of stg0.7970 with support from the 100 dma at stg0.7963.
JPY: Opened in early Europe at Y79.33 and Y100.55, early demand lifted dollar-yen to Y79.64 in thin Asian trade, before the rate met resistance from corporates and eased to opening levels. Comments from European officials that underlined there was no early deal to disburse the latest Greek aid payment pressured markets, a negative open in equities, aided by sharp cross supply pressed to Y79.22. Support from Japanese names cushioned the move and the rate settled in a tight range. Euro-yen flushed stops on the move to lows of Y100.41, before the rate recovered to Y100.60. The dollar continued flat in Europe and with risk aversion prevalent ground to Y79.21. Sideways trade continued before demand from Japanese interbank names bounced to Y79.40, extending to Y79.50 ahead of NY. Euro-yen continued heavy in early Europe and slipped to Y100.32, the cross later recovered in tandem with dollar-yen to Y100.75.
EasyForexNews Research Team