EUR – Closed in NY at $1.3306 after rate had recovered off session lows of $1.3264 (lows seen on reaction to EU Juncker comments on the strength of the euro) to $1.3319 before it eased into the close. Rate extended this easing to $1.3294 into early Asia before it bounced to mark session highs at $1.3318. However, recovery efforts met decent resistance at this level as sales of euro-yen, into the Tokyo fix, along with euro-Aussie sales, countered then pressed rate down to $1.3279. CTA and macro demand into the dip cushioned the move and allowed rate to settle between $1.3280/00 through the Asian afternoon, the rate trading around $1.3287 ahead of the European open. Rate came under early Europe sell pressure which quickly took it back through the Asian base, to $1.3262 as strong sales of euro-yen took this rate under Y116.50. Euro-dollar picked up demand into the dip which took it back to an initial recovery high of $1.3283, with comments from ECB Nowotny concerning repayment of ECB emergency funding provided the added demand to take rate on to $1.3310. Rate maintained its move above $1.3300 in late Europe.
GBP – Closed in NY at $1.6069 after rate had again found support in the $1.6035/30 area and recover at one point during the NY session to $1.6102. Rate had eased to $1.6046 before recovering into the close. Early Asia saw rate bounce between $1.6060/80 before it broke lower during the Asian afternoon, retesting that late NY pullback low of $1.6046 where it again found support. The deeper corrective pullback seen in euro-dollar Tuesday saw euro-sterling ease back below stg0.83 to stg0.8266, with trade through Asia consolidating this move between stg0.8267/83, opening Europe around stg0.8272. This move lower in the cross provided cable with some buoyancy, though underlying tone was seen remaining heavy while it struggles to take full advantage of any risk- on plays on recent weak UK data. Rate extended lows in early Europe to $1.6044 before eventually dropping through support at $1.6035/30 as euro-sterling cleared above its overnight Asian range. Rate touched a low of $1.6004 before middle eastern demand cushioned the move. This buying allowed cable to recover, added momentum provided as euro-sterling met resistance at stg0.8300, allowing cable to track euro-dollar’s stronger recovery, meeting resistance ahead of $1.6050
JPY – Euro-yen fixing supply provided the early downside pressure on yen pairs in Asia, with Japanese banks the stand out sellers, the cross slipped to lows of Y116.87. Japan LDP Sec Gen Ishiba comments that a weaker yen is worrisome for some Japanese industries and firms also seen attributed to the move. Dollar-yen was dragged lower and initially met decent demand ahead of Y88.00, before eventually making a show below at Y87.95. Recovery met resistance around Y88.20 with rate holding between Y88.00/20 in late dealings. Early demand lifted dollar-yen to Y88.32 in
Europe but as momentum faded the rate pared gains and settled around Y88.15. Traders reported of large US name supply, rate took it well but sat heavy. Fresh sales emerged taking the pair to Y87.79, stops were flushed on the move, later bouncing to Y88.10. Euro-yen tracked the dollar and was pulled to lows of Y116.47, before lifting back to Y116.80. The cross moved with euro-dollar and extended gains to Y117.20 following comments from ECB Nowotny.
EasyForexNews Research Team