EUR: Opened early Europe at $1.2717, Euro-dollar opened flat in Asia and lifted on euro-yen demand ahead of the Tokyo fix, the rate extended gains to $1.2715 as risk appetite improved across the board. Profit take sales pared light gains, before dip demand squeezed to $1.2729 and a re-test of yesterday’s intraday high. Tight range trade continued with a Swiss name a noted buyer in late dealings, the pair last $1.2715 ahead of Europe. A report in German newspaper Handelsblatt that said the IMF is preparing to quit the Greek aid program pressed in early Europe to $1.2706. The rate later bounced and as risk sentiment increased extended gains to $1.2735 on support from French names. Semi-official demand gave euro-dollar a further boost, flushing stops on the move to highs of $1.2757, before easing to $1.2745 ahead of NY. On the topside offers reported at $1.2760, a break opens technical resistance at $1.2767 (76.4% of $1.2791-1.2690), ahead of $1.2791 (Nov 9 high).
GBP: Opened early Europe at $1.5881 and stg0.8008, GBP opened flat in Asia with trade tied to a narrow range, before the rate lifted in tandem with euro-dollar to $1.5880. Late dealings saw the pair extend to $1.5894 as risk appetite improved and Asian equities remained in positive territory. Euro-sterling had a quiet Asian session stuck in a stg0.8001-13 range. Cable opened soft in Europe but found support ahead of the Asian low, the rate tracked euro-dollar’s extended recovery to $1.5895, later easing on profit take sales. Focus turned to UK Unemployment, on release of mixed data that showed a rise in claimant count and fall in the employment rate, cable traded flat and was unable to break the tight range. The pair later ground higher and made a show above $1.5900 and remained buoyant ahead of the Quarterly inflation report. As traders digested headlines the pair slipped to $1.5875 and extended further to $1.5858 on reaction to Governor King comments that said the UK may have a slow recovery without pound weakness. Euro-sterling spiked to stg0.8037 with offers seen into stg0.8040.
JPY: Opened in early Europe at Y79.75 and Y101.47, dollar-yen lifted on Japanese name demand in early Asia, before the rate pared gains as traders played the range. Support in the dip and aided by cross demand the rate recovered to Y79.50. Late trade saw the pair spike to Y79.82 on headlines from PM Noda that cited the possibility he could conditionally dissolve the House of Representatives on Friday. Euro-yen lifted to Y101.10 on Japanese name demand, before meeting resistance from spec names as traders reported of decent 2-way flow. Strong post fix demand recovered to Y101.20 and extended in late dealings to Y101.55 on PM Noda headlines. Dollar-yen had a slow grind higher to Y79.99 as traders reacted to the late Asian headlines from PM Noda. The rate later met semi-offical and Japanese name supply and eased to Y79.90 ahead of NY. Stops noted on a break of Y80.00, ahead of techs at Y80.04 (23.6% of Sep-Nov rally). The cross aided by euro-dollar’s extended recovery lifted to Y101.98, before easing with the dollar to Y101.80. Strong offers reported at Y102.00 with stops set, ahead of Y102.15 (200 dma).
EasyForexNews Research Team