The USD closed on a heavy tone in NY around Y78.10, off earlier Y78.30 intraday highs. The rate initially showed early gains to Y78.17 ahead of China PMI data, before coming under pressure on release of weaker than expected numbers that had expanded at the slowest pace in 8 months. Stops were flushed through Y78.00 on the move to print lows of Y77.91 where the pair met strong demand from reported semi-officials and bounced to Y78.00. Trade continued sideways and once again, Japanese officials were jawboning, but only adding to the confusion. On the downside stops noted on a break of Y77.90, more through Y77.70, ahead of strong demand into Y77.60/50. EUR/JPY closed in NY at 96.10, having recovered from early European lows of Y95.85. The cross ground lower through Asia holding around Y96.00, before falling in tandem with USD?JPY on weak China PMI data to Y95.70. Dip demand lifted to Y95.90 and the rate extended gains to Y96.05 going into the European open. Tight range trade expected today ahead of policy decisions from the Fed and ECB over the next two days.
EasyForexNews Research Team