The pair ended the NY session at $1.2462 after registering a NY range of $1.2433 to $1.2485. It was a fairly thin market start of the week with holidays approaching and the market was focused on Japan LDP, Tankan report and hostage-taking in Sydney. Early demand in euro-yen cross pushed the euro to session high of $1.2484, before trending lower to hit an Asian low of $1.2434 during early noon session and the pair recovers to $1.2443 last. Dollar-yen collapsed lower after Japan ruling party secured a landslide victory, prompting strong selling interest in the euro-yen and dragged the euro lower in early trade. Thereafter, firmer USD index on back of higher US yields and euro-yen selling interest pulled the euro to session low. The euro-yen cross met supply above Y148.20 and plunged to Y147.49 before rebounding to Y147.67 last. The euro paused 1 pip before NY’s high of $1.2485 with macro selling interest noted, further strong offers reported at $1.2500 while below 21-dma at $1.2434 ahead of option expiry Monday worth E1.58bn at $1.2400. No major European data today but US Empire manufacturing and industrial production will be released later.
