EUR: Opened early Europe at $1.2928, Euro-dollar closed in NY at $1.2930 after easing off a recovery high of $1.2952 to $1.2922. Rate opened Asia in a steady $1.2925/30 range before it picked up a bid tone led by the reaction to the MAS decision to leave rates unchanged, which, along with another low $/Cny fix, placed general pressure on the dollar. Euro-dollar edged to $1.2947 before momentum waned, leaving it to drift down to session lows of $1.2922 before settling between $1.2925/30 again into Europe. Quiet start into Europe was awoken by strong demand from the semi official, buying seen at $1.2935, $1.2950 and $1.2960, with macro demand aiding the triggering of stops above $1.2960 that took rate to an eventual high of $1.2985. Rate squeezed back to $1.2859, release of stronger than forecast Eurozone industrial production data only providing a minor positive react in the slippage. Traders noted that Asian sovereign supply provided the main counter to upside progress, though rate retained an underlying buoyant tone ahead of the New York open.
GBP: Opened early Europe at $1.6027 and stg0.8066, GBP closed in NY at $1.6046 after recovering from a pullback low of $1.6026, seen after easing off a session high at $1.6055. Rate dipped to $1.6042 in early Asia before edging up to retest the NY high (hit $1.6056) as the dollar came under general pressure following the move by MAS to keep rates on hold. Sell interest placed between $1.6050/60 countered the early move with rate dropping back initially to $1.6030 before marking a base at that NY pullback low of $1.6026. Rate was trading back above $1.6030 into early Europe. Euro-sterling closed in NY at stg0.8056 and edged to an overnight high of stg0.8069 before settling between stg0.8062/67. Strong demand for euro-dollar into Europe failed to lift cable as a UK clearer provided decent supply, which in turn pressured euro-sterling to an extended recovery high of stg0.8085. The cross eased to stg0.8073, which allowed cable to play catch up, edged to $1.6072 before momentum faltered. Late morning demand for the cross extended highs to stg0.8088, pressing cable back to $1.6040.
JPY: Opened in early Europe around Y78.33 and Y101.26, Dollar-yen closed in NY at Y78.37, having pulled back from a Y78.59 high to Y78.28 ahead of the close. Rate recovered in early Asia to Y78.54 before turning lower, moving down in line with other Asian dollar pairs as they took their lead from dollar-Sgd following the MAS decision to keep interest rates unchanged. Rate squeezed to Y78.32 before picking up fresh demand into early Europe, the rate edging back to Y78.50 before recovery faltered. Resistance remains into Y78.60, with stronger sell interest noted between Y78.70/80 ahead of Y79.00. Support seen at Y78.35/25, stops placed on a break of Y78.20. Euro-yen closed NY at Y101.33 after pulling back from Y101.72 to Y101.22 into the close. The hold above Y101.20/10 was seen positive, with early demand into Asia taking rate to Y101.60 before it turned lower in line with euro-dollar. Rate met support at Y101.25/20 before recovering to Y101.40 into Europe. Further demand edged rate above its 200-dma at Y101.81 to Y101.92 before momentum faded ahead of Y102.00.
EasyForexNews Research Team