EUR: Opened early Europe at $1.2750, Euro remained defensive but held above $1.2800 in light Asian trade as markets awaited a decision from eurozone ministers on Greece. The pair spiked to $1.2837 on initial reports that an agreement was reached, but soon slipped sharply. The rate flushed stops to $1.2736 after headlines from Germany’s Schaeble announced no agreement had been made and that ministers are due to meet again om Monday. Short covering put in a floor and euro-dollar lifted off lows to $1.2760 in late trade. Euro-dollar opened heavy as European traders reacted to the overnight Greek news, supply from a tech fund added weight to print lows of $1.2741. Dip demand recovered and extended to $1.2775 on Merkel comments, that according to sources said Greece’s financing hole through 2016 can be filled with a combination of lower rates and increased EFSF. Sharp cross demand predominately in euro-yen boosted further to $1.2795, before the rate stalled on reported semi-official supply to $1.2785.
GBP: Opened early Europe at $1.5886 and stg0.8026, GBP consolidated above $1.5900 in early Asia and lifted to highs of $1.5928 on initial reports that an agreement had been reached between eurozone Finance Ministers on Greek aid. The rate later slipped sharply to $1.5898 on headlines from Germany’s Schaeble that denied this and said meetings will continue on Monday. Euro-sterling initially lifted to stg0.8051, but soon slid to stg0.8005 where the rate met support ahead of stg0.8000, late trade saw the cross recover to stg0.8025. Cable ground higher throughout the morning and tracked euro-dollar’s extended recovery to $1.5905 ahead of the BOE Nov Minutes. The pair jumped 20 pips on release of headlines to $1.5930 that said it was unlikely the MPC will cut bank rates in the forseeable future. The rally stalled and slipped back to $1.5915 on reported Asian sovereign supply. Late trade settled in a tight range ahead of New York. Euro-sterling saw a slow grind higher to stg0.8035 with offers at stg0.8050 capping on the topside.
JPY: Opened in early Europe at Y81.87 and Y104.40, Dollar-yen opened on a bid tone in Asia and lifted to Y81.97 as the rate consolidated gains after the Tokyo fix. Strong supply ahead of the Y82.00 barrier eased and the dollar extended losses to Y81.71 following the disappointing eurogroup headlines on Greece. Late trade recovered to Y81.80. Euro-yen initially made a show above Y105.00 and flushed stops to highs of Y105.07 on early reports that a deal had been agreed. Headlines from Schaeble that denied eurozone finance chiefs had reached an agreement added weight and the cross slipped sharply to Y104.10, later recovering to Y104.45. Dollar-yen opened on a bid tone in Europe with demand seen from Macro accounts throughout the session. Dollar took out the Y82.00 barrier in earlier trade and extended gains to fresh 7 month highs of Y82.26, flushing stops on the move. Late trade eased to Y82.20 but sentiment remains strong ahead of New York. Euro-yen bounced off early lows of Y104.31, tracked euro-dollar’s extended recovery and flushed stops to highs of Y105.24.
EasyForexNews Research Team