EUR: Opened early Europe at $1.2788, Euro-dollar slipped sharply after the NY close to $1.2767 as Moody’s cut France’s credit rating by one notch to Aaa1. Short covering and demand from US banks aided recovery attempts to $1.2790, before large euro-aussie sales from prop accounts pressed. The pair eased to fresh intraday lows of $1.2764 and sat heavy, dip demand bounced and the rate extended gains on Asian names to $1.2811, before late profit take sales eased to $1.2790. Euro-dollar lifted to $1.2806 in early Europe, before the rate stalled and eased to $1.2775 as tight range trade continued. Sentiment increased and strong demand from Middle-Eastern names bounced to $1.2817, the move was countered by Asian sovereign supply and dipped back under $1.2800. UK clearer sales added weight and extended losses to $1.2780, before late trade recovered to $1.2810 ahead of New York.
GBP: Opened early Europe at $1.5913 and stg0.8037, GBP slipped to $1.5895 after the NY close on Moody’s downgrade of France by 1 notch to Aaa1, the rate sat heavy in Asia and ground further to $1.5891. The pair met support ahead of the 100 dma and tracked euro-dollar’s extended recovery back through $1.5900 to print $1.5920. Euro-sterling slipped sharply to stg0.8026 on the French downgrade, before finding support ahead of bids into stg0.8020. Cable remained in consolidation mode throughout the morning session and held above $1.5900 as traders reported of continued light flows. Late trade lifted through resistance to $1.5929, with technicals seen at $1.5939 from the 100-week ma, ahead of offers at $1.5940/50. The cross tracked early euro-dollar demand to session highs of stg0.8051, before easing to settle in a tight range. The Asian high seen capping moves on the topside at stg0.8056, a break opens stg0.8065 (15 Nov), with stops set.
JPY: Opened in early Europe at Y81.28 and Y103.96, Dollar-yen opened flat in Asia around Y81.30 and with trade tied to a narrow range dealers waited for the BOJ announcement. On release where the BOJ decided to leave policy unchanged, dollar slipped to session lows of Y81.15 as focus now turns to the upcoming election and further impact on policy. Dollar later bounced to Y81.30 on headlines that said the BOJ to continue seamless monetary easing. Euro-yen slipped sharply after the NY close to Y103.79 on Moody’s downgrade of France by 1 notch, the cross briefly recovered to Y104.00, before pressing to Y103.81 on the rate announcement. Late trade recovered to Y103.95 ahead of Europe. Dollar-yen opened heavy as European traders digested overnight BOJ policy decision headlines. Dip demand cushioned moves and the dollar extended gains to Y81.38, before late profit take sales eased to Y81.26. Euro-yen bounced off early session lows of Y103.67 and tracked dollar-yen’s extended recovery to Y104.23.
EasyForexNews Research Team