EUR: Opened early Europe at $1.2765, demand in the crosses predominately from euro-yen lifted the rate to $1.2760 in early Asia, flushing light stops on the move. Tight range trade continued and the pair ground higher to $1.2773 on market talk that Greece will get the next tranche. This followed comments from Finance Minister Stournaras that said there were no outstanding issues with Athens ahead of tomorrow’s eurozone FinMin’s meeting. Euro-dollar opened heavy in early Europe and slipped to lows of $1.2753, before support into $1.2750 cushioned. Reported Swiss bank demand led recovery attempts and extended to $1.2787, profit take sales eased and the pair settled in a tight range ahead of New York. On the topside stops noted on a break of $1.2790, through here opens $1.2802 (15 Nov high), ahead of strong offers at $1.2805/10 ($1.2808 – 200 dma). US data light today with highlights from Exisitng Home Sales released at 1500GMT.
GBP: Opened early Europe at $1.5917 and stg0.8020, asian equities opened in positive territory and lifted cable through $1.5900 to $1.5907 as risk appetite increased. Tight range continued and the pair tracked euro-dollar’s extended recovery to settle around $1.5918. Euro-sterling trade was light tied to a narrow stg0.8011-26 Asian range. Cable lifted in Early Europe to $1.5922 but found resistance from the Asian high and as traders reported of a directional buyer in euro-sterling the pair slipped to $1.5895. Dip demand later recovered to $1.5908 ahead of the New York open. The Asian high seen capping moves on the topside at $1.5924, a break opens $1.5940/50 ($1.5943/44 – 100-week ma, 50% of $1.6043-1.5882). Key tech support at $1.5882/81 (Asian high, 100-day ma). The Earlier mentioned directional buyer lifted euro-sterling through tech resistance to stg0.8037, before late profit take sales eased to stg0.8025.
JPY: Opened in early Europe at Y81.27 and Y103.75, Tokyo Spec names were noted buyers of yen crosses in early Asia and this lifted dollar-yen through the Y81.50 option barrier, flushing stops to highs of Y81.59. Momentum faded and the rate eased through the Tokyo fix on supply from Japanese names, profit take sales added weight and the pair eased to Y81.12. Late trade bounced to Y81.25 as dealers look ahead to the BOJ tomorrow, although it’s unlikely we will get any new easing measures ahead of the election on Dec 16. Euro-yen tracked early dollar demand and flushed stops through Y104.00 to print Y104.11, the cross eased after the fix and settled around Y103.75. Volumes continued light across the board in early Europe and dollar-yen trade was tied to a narrow Y81.17-34 range as markets remained in consolidation mode. The cross tracked early euro-dollar slippage to Y103.53, but found support ahead of Y103.50 and recovered to opening levels. Late trade eased to Y103.65 with resistance seen at Y104.11 from the Asian high, a break opens strong offers into Y104.20.
EasyForexNews Research Team