EUR – Closed in NY at $1.3576, after rate had seen a late lift in NY to $1.3594. Rate touched a low of $1.3573 into opening Asia before fresh demand emerged, the barrier at $1.3600 taken out as rate rose to an initial high of $1.3618. Second wave demand lifted rate to $1.3624, but defence of next barrier at $1.3625 managed to counter. Rate dipped to $1.3604 before stronger demand took out $1.3625 with rate marking session highs at $1.3633 before settling around $1.3620 into Europe. A fairly active Asian session, considering this afternoon’s US employment report. Early demand into Europe took rate on to $1.3640 but sell interest ahead of next barrier at $1.3650 countered, the selling prompted short term specs to cover back which took rate down to $1.3607. Fresh demand emerged into the dip, with rate picking up better momentum on release of better than forecast Germany PMI data. Barrier at $1.3650 was triggered, stops above taking rate on to $1.360, with a strong drive in crosses, euro-yen taking out barriers at Y126.00, euro-sterling seeing large demand into the 1000GMT fix, taking rate on to $1.3675. Rate retains buoyancy ahead of LTRO and NY open.
GBP – Closed NY at $1.5854 after rate had extended its recovery to $1.5876, the move aided as it tracked euro-dollar’s extended rise and the cross met strong headwind sell interest around stg0.8585/90. Rate marked lows at $1.5845 into opening Asian trade before fresh demand emerged to lift it back to retest Thursday’s high, touching $1.5875 before faltering. Rate drifted off to $1.5856 before fresh demand emerged into the Asian afternoon, taking it on to $1.5878, settling around $1.5870 into Europe. Euro-sterling had seen lows of stg0.8555 in NY, recovering to stg0.8565 ahead of the close. Recovery extended through Asia, again meeting supply at stg0.8580/90 though retained a firm feel into Europe. Cable extended highs to $1.5879 before faltering, the pullback to $1.5844 was seen in tandem with euro-dollar. Cable recovered to $1.5876 but lost momentum as euro-sterling began to climb. Release of weak UK PMI triggered further sterling sales, taking cable to earlier lows, while the cross retested Wednesday stg0.8607 highs. 1000GMT fix demand challenged key resistance at stg0.8630/35 before spiking to stg0.86485 on execution, the move dropping cable to $1.5807.
JPY – Dollar-yen opened on a bid tone in Asia and lifted to Y91.85 before momentum faded as move met offers linked to the next barrier at Y92.00. Rate dipped to Y91.62 before fresh demand emerged, the break of Y91.85 triggered stops that drove rate through Y92.00 to Y92.27. This move in dollar-yen, along with euro-dollar’s break above $1.3600 allowed euro-yen to extend its recent recovery, with momentum able to take out Y125.00 barriers with ease as rate extended to Y125.72. Profit take sales pared light gains around the European open with dollar-yen sliding to Y92.02, euro-yen Y125.27. Dip demand lifted the yen pairs, before positive eurozone Mfg PMI data extended recovery efforts to opening levels. Fresh demand emerged and euro-yen took out the Y126.00 barrier, flushing stops on the move to Y126.16. Dollar-yen tracked the cross to Y92.25 but once again met strong headwinds and eased lower. Focus turns to release of the US employment report at 1330 GMT for further direction.
EasyForexNews Research Team