EUR – Opened early Europe at $1.3159, Euro-dollar closed in NY Friday at $1.3160, off late session highs of $1.3174. Rate was marked higher into Asia as market reacted to the landslide victory of the LDP/NKP in Japan at the weekend, the rate tracking the mark up in euro-yen as win expected to have dovish undertones. The move took out barrier interest at $1.3175, which had helped to cap trade Friday. Rate eased to $1.3170 before getting taken back to $1.3185 on euro-Aussie led trade as this rate executed stops near A$1.2500. However, euro-dollar struggled to hold gains and began to drift lower. The move down gained pace on profit take sales in euro-yen which took it to session lows of $1.3149 before it settled around $1.3160 ahead of the European open. The corrective pullback extended to $1./3144 in early Europe before demand emerged, the buying lifting rate to $1.3169 but offers placed between $1.3170/75 provided a hurdle. Failure to break here prompted short term specs to cover back, the rate settling around $1.3150 ahead of New York.
GBP – Opened early Europe at $1.6179, stg0.8133, GBP closed in NY Friday at $1.6174, just off session highs at $1.6177. The mark up in yen pairs, following the LDP/NKP win in the weekend Japanese election, saw cable marked up to $1.6188 into opening trade Monday before this early rally faded and eased off to $1.6156. Fresh demand emerged into the dip allowing rate to move up, marking highs at $1.6202 before momentum faded. Moves were in tandem with euro-dollar, both correcting lower on profit take euro-yen sales, which eased cable to $1.6156. Late demand in Asia saw rate edging back to $1.6186, the move linked to sales of euro-sterling as the cross extended its corrective pullback off stg0.8155 Asian highs. Cable dipped back to $1.6173 in early Europe before middle eastern demand emerged to lift rate back above $1.6180. Euro-yen correction continued to place general pressure on the euro, allowing the cross to break under stg0.8120 which took cable up to retest the $1.6200 area ahead of the New York open. Cable retained a firm feel late morning, stops seen above $1.6220.
JPY – Opened in early Europe at Y83.96 and Y110.41, Yen pairs were marked higher into the Asian open after the weekend win for the LDP and NKP parties in the Japanese lower house election. Dollar-yen had closed NY Friday at Y83.52 and was marked up to Y84.55 in pre official open trade. Rate drifted back to Y84.30 before macro sales provided the weight to ease it on to Y84.00. Euro-yen was marked up to Y111.32, from its Friday close at Y109.90, with initial profit take sales able to ease it back to Y110.85. Japanese exporters added further weight to Y110.37, dollar-yen tracked the move to Y83.86, before both pairs made recovery attempts in late trade. Dollar-yen initialy lifted to Y84.06 in early Europe, before grinding lower to Y83.90, rate extended losses to Y83.61 as the pair filled gaps from the Asian open. Stops noted on a break of Y83.60, strong bids behind at Y83.50. The cross lifted with euro-dollar to Y110.66, before strong supply pared early gains. Rate extended corrective pullback to lows of Y109.93, later bouncing to Y110.13 and sits heavy ahead of NY.
EasyForexNews Research Team