EUR: Opened early Europe at $1.2860, Euro-dollar closed in NY at $1.2879 after rate extended its corrective pullback (off Friday’s post NFP highs of $1.3072) through the NY session to a low of $1.2859. Rate touched an early high at $1.2885 in Asian trade before turning lower again, influenced by early Japanese sales of euro-yen, followed by decent sales of euro-Aussie on demand seen for a syndicated Australian government bond. Triggered stops through $1.2850 extended lows to $1.2835. Recovery into Europe saw rate edge to $1.2864 before fresh selling emerged to knock rate down to $1.2850. A stronger recovery off this level was eventually capped ahead of $1.2880 as move met semi official supply. The pullback to $1.2865met the same name on the bid which helped rate settle for a while around $1.2870. Failure to build on the earlier recovery saw spec longs pare back allowing rate to the $1.2865/60 area ahead of the NY open. Little market moving data released through the morning with main moves seen influenced by cross plays. Key support seen at $1.2823 (200-dma).
GBP: Opened early Europe at $1.5992 and stg0.8042, GBP closed in NY at $1.6000 after rate had trailed euro-dollar’s deeper decline to $1.5975 (61.8% $1.5826-1.6217), the move lower provided some buoyancy by euro-sterling extending its corrective pullback away from stg0.80995 to stg0.8042, closing below a key tech level at stg0.8058. Cable posted an early high into Asia at $1.6003 before again trailing euro-dollar lower, the rate meeting support ahead of its NY low at $1.5976. The reluctant move lower allowed the cross to extend its pullback to stg0.80335, though was holding back at stg0.8040 into Europe. Cable recovered off lows, trading around $1.5994 into Europe. Rate dipped to $1.5984 into Europe only to bounce strongly, moving to $1.6017 as rate tracked euro-dollar recovery while the cross held toward its overnight lows. Talk of UK corporate cross sales at the 1000GMT fix has provided some support for sterling through the main part of the morning. However, the cross holding above Asian lows has seen cable ease below $1.6000 as it tracked fresh euro-dollar slippage.
JPY: Opened in early Europe at Y78.23 and Y100.59, Opened in Asia at Y78.25 and ground lower to Y78.19 in thin trade, before demand ahead of the Tokyo fix recovered to opening levels. With little fresh news and dealers still unprepared to chase the currency lower in the face of possible BOJ/MOF action, the pair settled in a narrow Y78.19-29 range. Euro-yen lifted through the fix to highs of Y100.78, before tracking euro-dollar slippage through stops to Y100.43, later bouncing to Y100.60. Dollar-yen opened on a bid tone in early Europe and lifted to Y78.36 on sharp demand seen in the crosses. Profit take sales eased, before a fresh wave of bids looked to re-test intraday highs ahead of NY. Cross demand led the charge in Europe and euro-yen printed highs of Y100.86, the rate met supply from real money and eased to Y100.65 as traders reported of continued light volumes. Tech resistance seen on the topside at Y100.93 from the Kijun line, ahead of offers at Y101.00. The Euro/Asia lows at Y100.49/43 provide support, a break opens Y100.41 (76.4% of Oct recovery), ahead of bids at Y100.20.
EasyForexNews Research Team