EUR – Closed in NY Thursday at $1.3187 after recovering off a late NY extended low of $1.31615. Rate continued this correction to $1.3195 in opening Asian dealing before dropping back to overnight lows of $1.3183. Demand quickly emerged into the dip, the initial upside push getting rate to $1.3206. A brief drift to $1.3195 picked up fresh demand that then lifted the rate on to a high of $1.3219. It then settled between $1.3205/20 ahead of the European open. Rate picked up fresh demand into Europe, the rate edging to $1.3222 before backing off to $1.3201. Traders continued to mention that the $1.3200 holds the strike of a decent sized maturity at today’s NY cut and expected to have some anchoring effect. However, rate bounced back, retesting the NY recovery high at $1.3232 before backing off to $1.3215 into Ifo release. Strong data saw rate spike to $1.3245, but supply ahead of $1.3250 countered. Swedish name sales then pressed rate back below $1.3232, the rate dropping to $1.3199 on release of disappointing EU winter economic forecasts. Rate was holding back around $1.3210 as market turned attention toward release of ECB LTRO2 payback amount (E125bln seen key).
GBP – Closed in NY at $1.5251, after rate had performed a decent recovery from earlier Asian lows of $1.5130, the rate touching a high of $1.5274 in NY before drifting off into the close. Rate edged to $1.5263 in early Asia before dropping back to mark overnight lows $1.5243 before picking up fresh demand that took it on to extended highs of $1.5268. A dip to $1.5245 met stronger demand, which allowed rate to edge back to $1.5265, before strong buying emerged that spiked rate through $1.5274 and on to $1.5330. Traders noted that stops had fired off through $1.5280/1.5300, the added demand in thin conditions allowing the extended move. Rate initially held gains between $1.5300/30 before drifting off to $1.5285 ahead of the European open. This move up in cable however failed to impress the dealer community as early reports suggested they would take advantage of the move to enter fresh shorts, placing stops above $1.5330. An early challenge on $1.5300 quickly reversed on that noted sell interest with rate pressed down to $1.5250 as euro-sterling extended its recovery off Thursday lows of stg0.8630 to stg0.8678, the cross taking its lead from euro-dollar and its react to a strong Ifo release. Sterling was holding off lows ahead of NY.
JPY – Opened in early Europe at Y93.31 and Y123.26 Dollar-yen saw an initial dip to Y92.93 in early Asia before demand into Tokyo lifted the rate to Y93.36. Post fix dollar supply pressed rate back to early lows before oil importer demand bounced through the early highs and on to Y93.42. Position adjustments ahead of today’s PM Abe/US Obama meeting, along with the looming weekend and expectations that the new BOJ Governor will be announced shortly after the PM’s return, seen playing their part in edging yen pairs higher. Euro-yen recovery edged to Y123.46, off earlier lows of Y122.54. Yen pairs opened on the defensive in Europe, euro-yen slipped to Y123.03 and the dollar Y93.16. Support in the dip cushioned moves, before reported spec fund demand extended the cross to Y123.42. Release of stronger than expected German IFO data boosted further to highs of Y123.77 as the dollar tracked moves lifting to Y93.48. Profit take sales pared light gains as traders positioned ahead of EU Winter Economic forecasts. On release of soft data the yen pairs re-tested lows, later bouncing to Y93.30 and Y123.25.
EasyForexNews Research Team