EUR – Opened early Europe at $1.2903, Euro-dollar closed in NY Friday at $1.2927 after rate had recovered off post US jobs data lows of $1.2876 to $1.2951 on source reports on the break down of voting on the ECB board. Rate gapped down to $1.2905 into the Asian open as it was marked down on weekend reports that Italian PM Monti would resign once his Budget had been passed. The rate pressed down to $1.2881 before meeting demand, which was linked to euro-yen buying, that cushioned the early move and allowed rate to recover to $1.2916 (closing the chart gap). Rate drifted to $1.2890, recovering to $1.2905/10 into Europe. Rate came under fresh pressure into early Europe on the Monti news. Volumes were described as low but rate was able to squeeze to $1.2886 before basing. Recovery to $1.2900 picked up momentum from middle east demand with rate given an added lift on Spanish economy minister comments that Spain was considering the bailout offer. Rate traded to $1.2917 but was quickly rejected away from $1.2920. Rate then settled close to $1.2900 ahead of New York.
GBP – Opened early Europe at $1.6023 and stg0.8053, GBP closed in NY Friday at $1.6039 after recovering from post US jobs data lows at $1.6002 to $1.6044. Rate was pressed back to $1.6023 into early Asian trade, as rate tracked early pressure on euro-dollar, with recovery efforts capped at $1.6043 as move met offers placed between $1.6040/50. Rate drifted lower through the balance of the overnight session, touching a low of $1.6017. Euro-sterling saw lows Friday of stg0.8045, the move lower in the cross providing cable with buoyancy during slippage. Euro-sterling in Asia extended lows to stg0.8033 in opening trade, as the euro came under pressure from weekend reports of Italian PM Monti offer to resign. Rate recovered through the session to stg0.8057 before it settled between stg0.8045/55 ahead of the European open. Cable recovered to $1.6033 in early Europe, dropping to $1.6014 as it tracked renewed pressure on euro-dollar, but buyers quickly emerged to correct rate back up to $1.6040 before it settled between $1.6030/40 ahead of NY. The cross consolidated its recent easing and buoyed cable.
JPY – Opened in early Europe at Y82.43 and Y106.39, Dollar-yen opened heavy in Asia and slipped in early dealings to Y82.50, extending losses through the Tokyo fix to Y82.45. Flat trade continued, before fresh cross sales pressed further to Y82.37 ahead of Europe. The cross opened lower in Asia as the euro came under general pressure on weekend reports that Italian PM Monti would tender his resignation following budget getting passed. The cross saw early lows of Y106.40 before willing buyers emerged to correct it back up to Y106.64. Fresh slippage to Y106.20 again found support and recovered to Y106.40 in late trade. Dollar-yen extended the slow grind from Asia in early Europe to Y82.30, fresh cross sales pressed further, macro supply added weight and the pair flushed stops on the move to lows of Y82.11. Euro-yen slipped to Y106.13, before bouncing with euro-dollar on Middle-Eastern demand to Y106.40. The cross was unable to maintain gains and headed lower on sharp supply, extending through Y106.00 flushing stops on the move. Late trade recovered to Y106.05 with bounces seen shallow ahead of NY.
EasyForexNews Research Team