EUR – Closed in NY Monday at $1.3026 after rate had slowly crept higher through the day, off $1.2982 to a session high of $1.3029. Rate initially dipped to mark overnight lows at $1.3019 into Asia before recovery resumed, the rate edging to an early high of $1.3041 before it met decent supply from a US name. Rate eased to $1.3026 in steps before fresh demand emerged into the Asian afternoon taking rate through the earlier high and on to $1.3046 ahead of the European open. Early Europe sold back into the overnight rise, pressing rate to $1.3025 before fresh demand emerged. This buying took rate through overnight highs, tripping stops above $1.3050 before touching $1.3061. Release of weak Spanish services PMI knocked rate back to $1.3046 but strong demand emerged into the dip to take rate on to an extended high of $1.3075, the move up aided by Eurozone PMI data beating flash forecasts. Rate drifted off highs, meeting initial demand ahead of $1.3050 before extending move to $1.3040 late morning on reported cross supply (euro-sterling sales). US non mfg ISM to provide the interest this afternoon.
GBP – Closed in NY at $1.5115, just off session highs of $1.5118 and seen after rate had performed an interesting recovery off post UK construction PMI react lows of $1.5000. The move was seen mainly driven by euro-sterling as this rate reacted to the general softening of the single European currency. The cross was pressed to NY lows of stg0.8614 and held heavy into the close. Cable’s recovery extended into Asia, the rally boosted on the back of stronger than forecast BRC retail sales data which took it to $1.5142, as the cross extended lows to stg0.8608. Cable then settled between $1.5120/40 through the Asian afternoon, pressing back to $1.5118 as early Europe took their seats. Cable pressed on to $1.5107 in early Europe before demand emerged into the dip. Buying took rate though resistance at $1.5150 and on to $1.5158 before position adjustments ahead of UK services PMI eased it back to $1.5130. Strong release bounced rate through the earlier highs and on to $1.5200 as the cross broke under stg0.8600 on UK clearer sales, taking it to a low of stg0.8589. Recovery to stg0.8610 met another round of heavy supply from a different UK clearer, retested earlier lows but provided cable buoyancy in its pullback off highs around $1.5150.
JPY – Dollar-yen closed NY at Y93.50 after recovering off a late Europe low of Y93.17. Similar with euro-yen as it too recovered into the close, moving up from Y121.13 to Y121.81, opening Asia around Y121.76. Early Asia saw dollar-yen trade within a range of Y93.30/55 before coming under pressure into the afternoon, the rate pressing to an eventual low of Y92.92. Early buyers had been spurred by positive equity markets, but the move up was countered by heavier macro supply, with some also citing Japan opposition refusal to back dovish Iwata as a deputy BOJ Governor. Rate was trading back between Y93.00/10 into Europe. Euro-yen managed to extend its recovery to Y121.87 before it too slipped lower, the rate marking a late session base at Y121.18 before recovering to Y121.40 into Europe. Euro-yen came under early pressure into Europe, the rate pressed to Y121.14 before fresh demand emerged, the rate then edging higher in tandem with euro-dollar to Y121.76 but again met decent supply on approach to Y122.00 which provided a decent counter. The rate dropped back to Y121.26 late morning on reported reaction to heavy euro-sterling sales, the selling weighing generally on the euro
EasyForexNews Research Team