EUR – Closed in NY at $1.3106 after rate had been pressured to extended recovery highs of $1.3119 as ECB Draghi failed to provide any dovish signals for a rate cut. This recovery extended the move from late Wednesday NY lows of $1.2965. Rate consolidated this rally in early Asia, trade contained within a range of $1.3102/16, until it got pressed back to $1.3087, settling then below $1.3100 ahead of the European open. Euro-dollar trade was basically sidelined with more interest seen in yen pairs as the Japanese currency continued to lose ground, the rise in euro-yen seen in tandem with dollar-yen and having little knock on effect into euro-dollar. Rate extended its pullback to $1.3080 in early Europe, meeting interested buyers into this dip which took it back to the $1.3100 area. Slip to $1.3083 mid morning but buyers again emerged to nudge rate back to hold just under $1.3100 in late morning trade. Focus will turn toward US NFP data at 1330GMT, the release to provide next directional impetus. Offers seen placed between $1.3120/30 with stops above. Further offers then seen into $1.3150 with model buy stops noted above. Support remains at $1.3080 ahead of $1.3050 and stronger interest into $1.3020.
GBP – Closed in NY at $1.5013, after pulling back from a recovery high of $1.5083, with euro-sterling’s break above stg0.8700, and push on to stg0.8732, providing the late negative weight. Cable managed to recover to $1.5026 in early Asia only to come under further downside pressure as traders reacted to reported comments from Eurogroup president Dijsselbloem that ‘Britain’s high national debt and persistent budget deficit had left it (sterling) vulnerable to attacks from currency traders. Cable stepped its way to an overnight low of $1.4982, while the cross extended its recovery to stg0.8740, but the pound was finding friends into early Europe as it pulled away from worst levels. Strong sterling demand into the 0900GMT fix (said to be for sterling-yen), with a US investment bank a stand out buyer, lifted cable to $1.5034 (50% $1.5083-1.4982), with euro-sterling pressed down to stg0.8785. Cable retained a buoyant tone through the morning, extending highs to $1.5038 late morning. Reported stops above $1.5040 seen as an attraction, if triggered expected to meet further demand between $1.5060/80.
JPY – Dollar-yen powered to an extended high of Y95.10 in NY Thursday, the yen losing ground across the board with euro-yen pushing up to Y124.58. Dollar-yen closed NY back at Y94.80, but was back up to challenge Y95.00 into release of Japan GDP data. A flat reading for Q4 prompted another round of yen sales, the spike back up from an initial pullback to Y94.85, with stops through Y95.10/15, provided the momentum which took rate to extended highs of Y95.45. Option barrier interest at Y95.50 had drawn protective sell interest ahead and kept upside progress at bay. Euro-yen closed NY at Y124.25 before it too rallied higher, moving through its NY high and on to Y124.99. Yen retained a soft feel into early Europe with an eventual push allowing dollar-yen to push above Y95.50 and on to Y95.61, while euro-yen moved through Y125.00 to Y125.17. Both rates retained an underlying buoyant tone through the balance of the morning session, but Japanese offers between Y95.60/70, then sovereign interest at Y95.75/80 provided the counter, as did strong offers ahead of Y125.20.
EasyForexNews Research Team