EUR – Euro closed in NY Monday at $1.3066 having recovered off session lows of $1.3015. Early trade in Asia was contained by $1.3055/70 before getting pressed lower on the back of euro-yen sales, prompted in turn by the release of softer that forecast China PMI data, traders highlighting the PMI new orders sub index moving below 50.0 as the relevant knock to risk. Euro-dollar was pressed to lows of $1.3033 before buyers emerged into the dip, allowing rate to edge back toward $1.3050 ahead of the Europe open. Rate held steady between $1.3034-46 in early European dealing as traders awaited release of key EZ flash PMI data. France data came in above expectations and spiked rate to $1.3084, though market was seen selling into this move. Germany came next and disappointed, prompting the France gains to be erased before triggered stops through $1.3000 extended the react to $1.2980. Eurozone came in as expected but only provided minimal respite before rate pressed down to $1.2974 (50% $1.2745-1.3202). Recovery efforts remained shallow and was seen keeping focus on the downside. Bids $1.2962, $1.2950/40 and $1.2920. Offers $1.3020. Focus now on Germany Ifo Wednesday.
GBP – Cable closed in NY Monday at $1.5286, just off late recovery highs of $1.5296, after rate had extended its recovery off earlier Asian lows at $1.5202. Rate managed to extend its upside correction to $1.5298 before momentum faltered and rate eased back to opening levels ahead of China PMI data. Weak release, the new orders sub index moving back below 50, provided a knock back to risk with demand for yen, via sterling-yen, influencing cable lower, the rate touching an overnight low at $1.5255 before meeting decent demand. Rate edged to $1.5269 then turned lower again, trading around $1.5257 ahead of the European open. Euro-sterling held between stg0.8536-47 through Asia and allowed cable to track euro-dollar moves. Cable came under early pressure and extended lows to $1.5249 before getting shoved up to $1.5274 as it tracked euro-dollar’s react to strong French PMI data. Rate reversed as German PMI data disappointed, the corrective pullback tempered slightly as euro-sterling was pressed to stg0.8520, though cable challenged support at $1.5200. Rate touched $1.5197 before edging back to $1.5230/35. Cable still seen as a sell on rallies, but dividend demand interest over next few sessions should buoy into Thursday Q1 GDP.
JPY – Dollar-yen closed in NY Monday at Y99.28 after rate had been pressed back to Y98.98 following earlier failed attempt to take out the Y100.00 area. Rate touched a recovery high at Y99.39 in early Asian trade before turning lower, the initial pullback seen as a reaction to a weak Nikkei with the move lower then given added momentum on release of soft China PMI data. Large stops were triggered through Y98.80 and provided weight to take the pair to extended lows of Y98.59. Buyers emerged into the dip though recovery efforts were described as shallow. The cross tracked dollar-yen moves, the rate extended its corrective pullback to Y128.54 from an early high of Y129.83. Euro-yen spiked in early Europe to Y129.35 on release of stronger than expected French flash PMI data, rate consolidated before a soft German release pared gains. Euro-dollar’s break of $1.3000 added further weight as the cross made a show under Y128.00, flushing stops on the move to print an eventual low of Y127.93. Dollar-yen tracked the move and after lifting to Y98.89 saw sharp slippage to Y98.53, before support in the dip cushioned. The underlying tone remains heavy as the yen pairs head into the NY session around Y98.70/Y128.20.
EasyForexNews Research Team