EUR – Closed in NY Monday at $1.2842 after rate had extended recovery highs to $1.2868 following the release of weaker than expected US ISM data. The recovery had begun in a holiday thinned European market with Asian sales of dollar-yen providing the main drive as the dollar came under general pressure. Rate began the Asian session between $1.2840/50, consolidating the NY move until another round of strong dollar-yen sales again influenced it higher. Rate edged to $1.2878 where it encountered offers between $1.2875/80. Rate was drifting off those highs into Europe, opening the session around $1.2862 before extending move to $1.2847. Rate met decent demand below $1.2850 before bouncing back to $1.2873. Release of weak Spain PMI data dropped rate back to $1.2852, recovered to $1.2862 bwefore weak Italian PMI data prompted another round of sales that took it to $1.2844. Slightly stronger than flash forecast French, German and EZ PMI data allowed for a recovery to $1.2863 but met decent supply that dropped it back through the Asian low of $1.2840, triggering stops before touching $1.2828. Recovery faltered ahead of $1.2850, trading around $1.2835 ahead of NY.
GBP – Closed in NY Monday at $1.5230 after rate had seen extended recovery highs of $1.5242 as it was pulled higher by euro-dollar as it reacted to the release of weaker than expected US ISM data. Rate continued its corrective pullback into early Asia, the rate touching a low of $1.5218 before picking up fresh demand, the buying able to lift the rate through resistance between $1.5240/50 and on to $1.5259 as another round of strong dollar-yen sales prompted general dollar sales. Rate eased to $1.5235, holding between $1.5235/40 into Europe. Cable moves were generally influenced by euro-dollar as euro-sterling was contained by stg0.8437/47. Cable extended its corrective pullback to $1.5215 in early Europe but managed to bounce back to $1.5240 ahead of UK PMI release, weak chatter suggesting a better than expected release providing buoyancy. However, release was an improvement on Feb but below medians and prompted another round of cable sales that took rate back to retest earlier lows. Recovery to $1.5226 proved short lived as stronger selling emerged to drop rate through $1.5200 and toward Monday lows of $1.5178 though euro-sterling remained back below stg0.8450.
JPY – Dollar-yen continued Monday’s corrective pullback through Asia, the rate opened around Y93.25 before touching an early low of Y93.06 on a negative open for the Nikkei. Fresh selling emerged taking the rate through Y93.00, triggering a number of stops on the move to Y92.57. Dollar sales were attributed to PM Abe and Kuroda comments as the rate later recovered to Y92.86. Euro-yen continued under pressure and slipped with the dollar to Y119.15. Dollar-yen extended recovery efforts to Y92.96 in early Europe, before the rate stalled meeting offers ahead of Y93.00. Demand in the crosses following release of eurozone mfg PMI data gave an added boost, the rate extending to Y93.29 ahead of NY. Euro-yen lifted with the dollar to Y119.64 in early Europe, before easing off highs. The soft tone continued, stops triggered in euro-dollar pressed to Y119.14, before support in the dip cushioned. Recovery efforts later lifted to Y119.75 with resistance seen at Y119.86 (Asian high), ahead of offers at Y120.00.
EasyForexNews Research Team