EUR: Opened early Europe at $1.2937, Euro-dollar closed in NY at $1.2932, just off recovery highs of $1.2937 after rate had seen lows in this session of $1.2891. Rate drifted down to $1.2929 in early Asia before demand emerged to edge rate up to pressure stops through $1.2940/50. the break taking rate on to $1.2953 before momentum faded. Risk tone was given an early boost on the back of positive S&P futures, though Asian equity markets were seen mixed. Rate drifted back to $1.2932 before settling around $1.2935/40 into Europe. Strong sales emerged into early Europe, Swiss and UK name selling quickly took rate below the Asian base with triggered stops and real money sales taking the rate below Monday’s base at $1.2891 to $1.2887. European name bids between $1.2890/85 cushioned the move before rate basically settled around $1.2900. Talk of gamma interest either side of $1.2900 was seen helping to keep rate contained, though any dips under the figure was seen attracting some decent demand, the semi official a noted buyer into a late morning dip before it settled around $1.2910.
GBP: Opened early Europe at $1.6227 and stg0.7973, GBP closed in NY at $1.6222, off highs of $1.6233 seen after rate had recovered off session lows of $1.6181. Rate touched a low of $1.6220 in early Asian trade before picking up demand, with risk given an early boost as market took direction from positive S&P futures. Rate tracked euro-dollar higher, moving up to session highs of $1.6237 after tripping minor stops on the move above the NY high. Rate drifted off to $1.6225 ahead of the European open with rate picking up fresh demand into the new session, extending highs to $1.6240. Rate got pulled back to $1.6217 as euro-dollar came under heavy sell pressure into Europe, though euro-sterling easing below stg0.7950 diverted a good portion of this weight. Cable recovery was seen driven by UK system demand, the move above the earlier high at $1.6240 propelling rate on to $1.6268 (76.4% $1.6296-1.6181) before momentum faded. Corrective pullback was given added weight by Asian sovereign sales which took it to $1.6229, allowing euro-sterling to recover off stg0.7936 to stg0.7955.
JPY: Opened in early Europe at Y77.77 and Y100.32, opened Asia just off NY lows at Y77.81, early talk suggested the Y77.80 level was holding semi official demand. However, general dollar sales eventually provided the weight to break under Y77.80, the move extended to Y77.74. Euro-yen took direction from the easing in dollar-yen, with the overnight recovery in euro-dollar reversed into early Europe which took the cross to extended lows of Y100.32, having seen highs in Asia of Y100.83. Dollar-yen opened flat in Europe with trade confined to a Y77.75-80 range. Yen sentiment increased and the rate pressed through the overnight low, flushing stops to print Y77.66, later nudging higher to settle around Y77.70. The pair sits heavy ahead of NY and a break of Y77.50 on the downside could open the door for BOJ intervention, traders say. The cross opened heavy and extended overnight losses to Y100.23, before meeting support in the dip to Y100.40. A fresh wave of demand attempted a move higher but was unable to consolidate gains, the rate later reversing to Y100.20.
EasyForexNews Research Team