EUR – Closed in NY Wednesday at $1.2780 after recovering off a low of $1.2750 to $1.2790, with corrective pullbacks ahead of the close contained by $1.2765. Rate edged to an early high of $1.2786 in Asian trade, reversed to lows at $1.2774 before continuing its recovery, slowly stepping its way to an overnight high of $1.2794, settling around $1.2790 ahead of the European open. Early buyers into Europe took rate above $1.2800, extending this move to $1.2809 before settling back around $1.2800 into German retail sales data. A strong release saw rate trigger stops above $1.2810, allowing rate to advance to highs of $1.2815 before fresh selling emerged ahead of $1.2820 which countered. Rate eased off to $1.2783 before picking up another round of demand, this time fading at $1.2809 before turning lower again. The corrective pullback gained added weight as German unemployment showed a surprise increase which dropped rate to a low of $1.2755. Strong demand ahead of Wednesday lows at $1.2750 cushioned the move and allowed for a recovery to $1.2793. MSCI readings for end month flows suggests fixings to see decent demand for euro-dollar, as well as euro-yen.
GBP – Closed in NY Wednesday at $1.5131 after rate had recovered off traded lows of $1.5093. An early Asia dip to $1.5125 attracted fresh demand to allow recovery to extend to $1.5150 before momentum faded. Rate eased to $1.5132 before settling between $1.5132/38 into Europe. Euro-sterling was contained within stg0.8439/52 through Asia, the extended easing in this rate providing cable with its buoyancy. No sign as yet of expected European sovereign end month demand for the cross, though this could be offset by reported end month cable demand. Release of stronger than forecast Nationwide house price data provided sterling with an early boost into Europe, taking cable to extended highs of $1.5171, while the cross moved down to retest Wednesday lows at stg0.8438. Cable eased back to challenge broken resistance at $1.5150 before bouncing back to $1.5167. Rate was pulled lower again by euro-dollar slippage, though euro-sterling pressed to test support at stg0.8425/20 helped cushion the move before it lifted again. Break down to stg0.84155 saw cable extend recovery to $1.5177, but failed to place resistance at $1.5180/85 under pressure. Rate was holding back below $1.5160 in late morning, as the cross edged to stg0.8437.
JPY – Dollar-yen came under fresh sell pressure in early Asia as risk took a knock from the negative opening in China stocks. The downside move picked up momentum with Japanese exporters the stand out sellers for month-FY end, with macro also adding weight as rate eased back. A minor bounce off Y94.02 to Y94.17 attracted fresh sellers as they turned their attention to reported stops sub Y94.00. Rate touched a low of Y93.98 before profit take demand quickly emerged to Y94.24. Euro-yen dipped in tandem with dollar-yen to Y120.14, though a slight positive tone in the euro provided some buoyancy and allowed for a late recovery to Y120.62. Dollar-yen opened flat in Europe with trade tied to a narrow 20 pip range. Sentiment turned on release of soft German unemployment data, sharp cross supply predominately in euro-sterling added further weight as the pair slipped to Y94.05. Repatriation flow for fiscal year end extended through Y94.00, flushing stops on the move to Y93.87. Euro-yen tracked the dollar to lows of Y119.75, before support in the dip provided a cushion. The cross bounced back above Y120.00, extending gains to Y120.30 with dollar-yen consolidating above Y94.00 ahead of NY.
EasyForexNews Research Team