EUR – Closed in NY Thursday at $1.3056 after it had been pressed to session lows of $1.3053 on the negative Wall street close. Rate picked up demand into the Asian open, the initial buying lifting it into an early trade range of $1.3060/70 before Tokyo entered the market and provided demand via euro-yen. Rate edged to an initial high of $1.3077, extending to $1.3083 during the Asian afternoon. Comments from Italy Bersani that he wouldn’t be looking to form a coalition with Berlusconi dropped rate to $1.3060 in early Europe, with the release of better than expected German retails sales only able to give a mild counter, taking rate back up to $1.3070/75. Stronger than forecast Spanish PMI data lifted rate on to $1.3101 before rate was pressed back to $1.3067 on weak Italy PMI data. Rate was then buoyed by slightly better than expected French, German and EZ PMI numbers bit held off the earlier highs. Weak UK PMI dropped cable lower, the sharp move down weighing on euro-dollar which broke under the Asian low to $1.3022. Rate retained an underlying heavy tone with dollar demand seen linked to NYC equity releated interest. Barrier interest at $1.3000 and large stops below now seen within touching distance.
GBP – Closed in NY Thursday at $1.5159, the rate having pulled back from best levels of $1.5222 to $1.5149, but it was noted that the rate attracted decent demand into the pullback, partly linked to euro-sterling sales as this rate extended its lows to stg0.8602. The cross closed NY around stg0.8612, with trade through Asia contained within a tight stg0.8610/20 range, leaving cable to track euro-dollar’s recovery. Cable edged up from an opening low of $1.5154, stepping its way to an eventual high of $1.5186 ($1.5188 50% $1.5222-1.5153) ahead of the European open. Cable settled between $1.5160/80 in early Europe before it came under pressure ahead of UK PMI data release. Rate dropped from $1.5160 to $1.5145 into release, the weak number dropping the rate to $1.5116. Second wave sales took rate through support at $1.5100, before breaking through recent lows between $1.5080/73. Triggered stops through $1.5070 provided the weight to take out barrier interest at $1.5050, the rate touching an eventual low of $1.5012 before profit take and dip buyers emerged to cushion. Recovery clawed its way back up to $1.5050 on reported Asian sovereign buys. Traders note large barrier interest at $1.5000. UK services PMI Tuesday becomes next focus.
JPY – Month end dollar buying saw dollar-yen pressured to a recovery high of Y92.85 in NY Thursday, the rate then eased to Y92.65. Tokyo emerged with sell interest into their open, but the early supply was met by demand fix interest which lifted it back above Y92.60. The pair reversed to Y92.47 and took direction from the early negative move in the Nikkei, later recovering to Y92.70. Euro-yen tracked dollar moves and lifted to Y121.27, later settling around Y121.00. Euro-yen was pressured to Y120.74 in early Europe before the rate bounced on dip demand from Middle-Eastern names. The cross tracked euro-dollar’s extended recovery to Y121.44, before soft Italian mfg PMI data pared light gains. Decent readings from France/Germany supported as the pair held above Y121.00 into NY. Dollar-yen was dragged higher by early cross demand to Y92.70 where the rate settled and consolidated gains. Strong dollar sentiment on much weaker than expected UK mfg PMI data extended gains to Y92.94, flushing stops on the move. Late trade eased to Y92.85.
EasyForexNews Research Team