EUR – Opened early Europe at $1.3250, Euro-dollar closed in NY Tuesday at $1.3227 after easing off session highs at $1.3238. Rate marked overnight lows at $1.3223 in early Asia before French name buys of euro-yen provided some early lift. Rate touched $1.3236, dipped to $1.3225 before picking up stronger demand that took rate through $1.3240. Stops above here provided the momentum to take out barrier interest at $1.3250 and edge rate on to $1.3256. Rate settled back around $1.3250 into Europe. Rate eased down to $1.3229 in early Europe before picking up fresh demand interest, traders noting continued sovereign demand for the pair after another overnight session of dollar buy interventions in Asia. Release of stronger than forecast Germany Ifo data provided some added lift from $1.3240 to $1.3248 but stops above $1.3260 then became the main attraction. As stops were triggered it added to the upside momentum allowing rate to stretch on to $1.3284. Offers placed into the May1 highs at $1.3285 countered the move and allowed rate to drift back to $1.3270.
GBP – Opened early Europe at $1.6261, stg0.8124, GBP closed in NY Tuesday at $1.6249 after getting driven to highs at $1.6270 following the eventual break above $1.6230, which in turn provided the momentum to take out barrier interest at $1.6250. The move lagged euro-dollar’s recovery and allowed euro-sterling to extend its recent recovery to stg0.8145 in NY, with Asia taking it on to stg0.8149. Cable touched an early low in Asia at $1.6246, matching the NY pullback off $1.6270, and again met willing buyers. Rate recovered through the Asian session to $1.6267, the move seen tracking euro-dollar as euro-sterling was confined to a tight stg0.8136/49 range. Pullback off the highs found support around $1.6260 with outlook into early Europe remaining firm. Fresh demand in early Europe took rate back to retest the Asia/NY highs, eventually taking out the barrier at $1.6275 before meeting stiff resistance into $1.6280. Another round of buying took rate above this level and on to $1.6300 before the barrier here was tripped and rate edged on to a high of $1.6307.
JPY – Opened in early Europe at Y84.30 and Y111.65. French name demand for euro-yen into early Asian trade took rate through a reported stops level at Y111.50, with the added buying able to take rate on to an initial high of Y111.69. This early move in the cross took dollar-yen to a high of Y84.44 but the rate stalled ahead of barrier interest at Y84.50. Dollar-yen drifted off to Y84.22, but euro-yen continued to push higher, as it then took its lead from euro-dollar, extending highs to Y111.78. Dollar recovered to Y84.35 in late dealings. Dollar-yen trade continued light in Europe tied to a narrow Y84.26-44 range. Early profit take sales ground to Y84.26, before support in the dip and aided by strong cross demand lifted to Y84.44 ahead of NY. The rate is expected to meet strong resistance ahead of the Y84.50 barrier. Euro-yen opened flat and remained in consolidation mode, before lifting to Y111.75 on reaction to stronger than expected German IFO data. Risk appetite increased and the cross extended gains taking out the Y112.00 barrier, flushing stops on the move to print 15 month highs of Y112.13.
EasyForexNews Research Team