EUR: Opened early Europe at $1.2987, Euro-dollar closed in NY Friday at $1.3045 after rate had retreated from an initial react high of $1.3072 from release of US employment data, to a pullback low of $1.3015. Rate opened Asia around $1.3035 and continued to drift lower as markets reacted to analysis of Friday’s jobs data, as well as ECB Asmussen comments suggesting some tensions abound in securing next Greek aid tranche, with focus turning to today’s Eurogroup FinMin meeting where Greece, Spain and Cyprus are expected to be discussed. Market will be wary of any reported comments from this session. Tokyo, New York and Toronto holidays today made for a subdued session through Asia and has continued to make for low volume trade through the European morning. Rate traded to a low in Asia of $1.2983 with Europe providing further weight to take rate to an initial extended low of $1.2963. Asian reserve manager and semi official demand greeted the move but only made for a shallow recovery before rate turned lower again and squeezed to $1.2957. Stronger demand seen into $1.2950-30.
GBP: Opened early Europe at $1.6108 and stg0.8062, GBP closed in NY at $1.6136 after pulling back from post US employment report highs of $1.6217 to $1.6123. Rate nudged to mark an early high into Asia at $1.6142 before turning lower, taking its lead from euro-dollar slippage, with rate squeezing down to $1.6102 (76.4% $1.6067-1.6217) before settling around $1.6110 into Europe. Euro-sterling edged up to retest Friday’s NY high at stg0.8078 into Asia before retreating to stg0.8060 into Europe, the rate then settled between stg0.8059/70 through the European morning. Cable tracked further euro-dollar slippage into Europe, the rate pressed to a low of $1.6065 following the break of key tech support at $1.6102, with recovery attempts thwarted by offers toward $1.6080. Japan, US and Canadian markets closed Monday expected to make for a very slow Monday afternoon. Cable bids now seen at $1.6065, more between $1.6050/40. Resistance $1.6080 ahead of $1.6100. Euro-sterling has bid interest at stg0.8050/45 which has been seen underpinning.
JPY: Opened in early Europe at Y78.58 and Y102.02, Dollar-yen edged higher in a Tokyo holiday thinned session, meeting resistance at Y78.76 before turning lower. The move down was given added weight as euro-yen stops were triggered through Y102.20 and Y102.00, to print an overnight low of Y101.97. Dollar-yen squeezed to Y78.51, with early Europe probing below Y78.50 for stops, touching Y78.49 before edging back to Y78.58. Dollar-yen opened heavy in Europe to re-test the overnight low, sharp cross sales added weight and the pair slipped to Y78.30. US bank sales and noted profit taking extended declines to Y78.12, before dip demand recovered to Y78.20. Market volumes continued light due to the New York holiday with strong demand seen into Y78.00. Euro-yen mirrored early dollar moves and eased to Y101.60, US Investment house supply pressed through support and flushed stops to Y101.25. The cross met support from the 21 dma and bounced to Y101.40, however the underlying tone remains heavy.
EasyForexNews Research Team