EUR: Opened in early Europe at $1.2910, Euro-dollar nudged higher on the Asian open touching $1.2962, before supply from a US name pressed lower. Fresh euro concerns as another weekend passed without a Spanish request for aid added weight and the pair slumped, triggering stops through $1.2920 and $1.2900 to print lows of $1.2891. Rate initially bounced back above $1.2900 and settled in a tight range as volumes were seen light ahead of Europe. Euro-dollar made a show back under $1.2900 in early Europe before support in the dip recovered to opening levels. Macro accounts/Reserve manager demand lifted to $1.2935 and as risk sentiment increased the pair extended to $1.2955. Rate stalled and consolidated gains, before a fresh wave of demand touched $1.2970, later easing on profit take sales ahead of NY. On the topside offers reported into $1.2980, stronger behind at $1.2990/00 with stops set on a break. More stops noted through $1.3010/20 ahead of $1.3029 (Resistance from 17 Sep).
GBP:Opened in early Europe at $1.6032 and stg0.8052, GBP opened higher in light Asian trade to $1.6079, before tracking sharp euro-dollar declines and slipping to $1.6027. Dip demand later recovered and the rate settled in a tight range amid light flow.
Euro-sterling lifted to stg0.8063 in early Asian trade before easing lower in tandem with euro-dollar to stg0.8040 where the rate met support. Cable headed lower on the European open to $1.6021 where the rate met strong support and recovered to opening levels. The pair, given a boost by strong euro-dollar gains extended to $1.6058, before meeting Asian names on the offer. Risk appetite continued and the rate printed highs of $1.6078 with resistance seen at $1.6085 (Asian high), ahead of techs at $1.6097/1.6104 (12 Oct high, 38.2% of $1.6309-1.5977). Euro-sterling endured a slow grind in tandem with euro-dollar to stg0.8074, where the rate ran into offers and consolidated early gains ahead of NY.
JPY: Opened in early Europe at Y78.52 and Y101.36, Dollar-yen opened flat in Asia before easing lower on cross yen supply to Y78.33, the pair encountered usual Gotobi demand into the Tokyo fix with 2 banks seen buying in good size. Dollar recovered to opening levels, before a fresh wave of demand from Japanese names lifted to Y78.62. Euro-yen initially lifted to Y101.62 in early Asia, before sharp cross supply pressed through support to print Y101.04. Demand ahead of the Tokyo fix recovered to Y101.30, extending to Y101.45 where the rate settled in a tight range. Macro demand lifted dollar-yen to Y78.66 in early Europe where the rate stalled and consolidated gains. Risk appetite continued and the dollar ground higher through tech resistance from the Ichimoku cloud base to Y78.72 and remains buoyant ahead of NY. Euro-yen largely tracked euro-dollar moves and initially slipped to Y101.24 around the European open, before finding support from Macro names and recovering to Y101.50. The pair extended recovery attempts and made a show through Y102.00 to Y102.09, later easing to Y102.00.
EasyForexNews Research Team