EUR – Closed in NY at $1.3565, having seen post FOMC highs of $1.3588. Rate marked lows in early Asia at $1.3562 before settling around $1.3570 through the balance of the Asian morning. Late session buying saw it mark session highs at $1.3584 into Europe but this move quickly reversed as market reacted to disappointing Deutsche Bank earnings data. Rate retreated to $1.3551, edging back to $1.3555 into German retail sales release. Poor data had minimal initial effect, triggered sales meeting take profit demand following the earlier pullback, but sell weight eventually extended downside to $1.3544 before meeting stronger demand, traders noting resting bids placed from $1.3545 through to $1.3500. Rate settled between $1.3544/65 for most of the European morning, with moves within reacting to EMU peripheral bond spread widening, countered by an increase in SNB Q4 euro holdings and better than expected German employment data. Rate broke up to $1.3571 at 1000GMT on suggested fix interest, before easing back into the earlier mentioned range. Resistance $1.3580 through to $1.3600 barriers. Support $1.3545-00, intraday traders look to buy dips between $1.3530-15.
GBP – Closed in NY at $1.5797, the rate having seen extended recovery highs of $1.5817 as the dollar came under pressure post FOMC announcement, dipping to $1.5790 ahead of the close. Rate slipped to $1.5792 in early Asia, with recovery attempts countered around $1.5805 through the Asian morning before rate managed to step its way through the NY high and on to $1.5826, reacting to improved GfK consumer confidence data, ahead of the European open. Rate reversed in early Europe as it tracked the opening euro-dollar pullback, but demand into $1.5800 cushioned the move at $1.5801. Fund sales of euro-sterling pressed this rate down to stg0.8565 (Asia range stg0.8576-93; NY high Weds stg0.86065), the move allowing cable to push above overnight highs and on to $1.5835, but rate met headwind sell interest from the middle east, with traders also set to fade rallies between $1.5830/50. Cable eased to $1.5808 before picking up fresh demand, as the cross extended lows to stg0.8560, with reports of end month cable demand spreading around the market allowed cable to edge on to $1.5843. Rate was holding around $1.5820 in late morning trade, the cross around stg0.8572.
JPY – Dollar-yen closed in NY at Y91.09, edging up in early Asia to mark highs at Y91.15 before Tokyo opened and sold into the move. Rate continued its corrective pullback away from Wednesday’s highs of Y91.41, pressing down to Y90.75, later settling around Y90.85/91.00 into Europe. Euro-yen closed in NY at Y123.36, touched an early Asian high of Y123.72 before Tokyo sold back into the rally at their open, Japanese investor supply added weight to Y123.08 after an attempted recovery off Y123.13 faltered into Y123.60. Early demand in Europe from offshore names lifted dollar-yen to Y90.93, before the rate settled in a tight range. Strong support in the cross dragged the pair back above Y91.00, but the move faltered on talk of large option strikes (Y90.00-91.50) rolling off for todays NY cut. Euro-yen opened heavy and extended losses to Y122.98 on release of soft German Retail Sales data. The pair met willing buyers in the dip and extended recovery attempts with euro-dollar to Y123.30. Late trade lifted to Y123.56, before profit take sales pared light gains.
EasyForexNews Research Team