EUR: Opened early Europe at $1.2755, Euro-dollar had a lacklustre Asian session with trade confined to a tight $1.2755-85 range. Cross sales predominately in euro-yen eased to $1.2770 after the Tokyo fix, the rate extended losses to $1.2755. Dip demand later recovered and the pair settled around $1.2765. Euro-dollar opened heavy in early Europe and was immediately on the defensive, real money sales pressed to $1.2745, before the rate met demand from a US bank. With recovery attempts seen shallow a fresh wave of Macro supply extended losses, CTA/System driven sales added further weight and the pair flushed light stops to lows of $1.2724. The rate sits heavy with support seen on the downside at $1.2720/15 ($1.2717 – 15 Nov low), through here opens strong bids at $1.2705/00 ($1.2703 – 14 Nov low), with stops set, ahead of more bids/stops at $1.2680.
GBP: Opened early Europe at $1.5860 and stg0.8043, the Asian session was quiet across the board and cable traded a very tight $1.5857-68 range. Euro-sterling held above stg0.8050, with stops noted on a break of stg0.8065, ahead of strong offers at stg0.8080 (200-day ma). Cable lifted to $1.5875 in early Europe on sharp euro-sterling slippage, the rate extended gains through the 100-day ma to highs of $1.5894, before profit take sales pared light gains. The rate ground lower to $1.5865 and with lack of UK data release settled in a tight range ahead of New York. Strong offers reported on the topside at $1.5900, ahead of techs at $1.5912 (38.2% of $1.5269-1.6309). Support seen at $1.5850 from the intraday low, a break opens $1.5830/25 ($1.5828 – 15 Nov low). Euro-sterling continued from Asia and opened heavy, the cross immediately on the defensive pressed through tech support to print lows of stg0.8021. Late trade bounced to stg0.8030, however recovery attempts seen shallow. Strong support seen on the downside into stg0.8005/00, ahead of stg0.7970 (13 Nov low)
JPY: Opened in early Europe at Y80.98 and Y103.30, early demand lifted dollar-yen to Y81.26 in light Asian trade, before the rate pared gains on cross sales post the Tokyo fix. Japanese names added further weight and made a show under Y81.00, before recovering on Trust bank demand. Late trade was heavy and dollar-yen sat around session lows of Y80.90. Euro-yen lifted to Y103.90 in early Asia before sharp supply from a US bank pressed after the Tokyo fix, the cross extended losses in late dealings to Y103.23. Early demand in dollar-yen extended the corrective pullback off late Asian lows to Y81.00. Comments from Japan’s opposition leader Abe that reiterated a call for bold monetary easing gave the rate a further boost to Y81.15, before dollar turned defensive after reports of an earthquake in the Kanto region hit newswires. Late cross demand lifted dollar-yen to Y81.20. Euro-yen ground lower throughout the session in tandem with euro-dollar to Y103.05, the cross found support in the dip ahead of bids at Y103.00 and recovered to Y103.40 in late trade.
EasyForexNews Research Team