EUR: Opened early Europe at $1.3090, Euro-dollar spiked higher after the New York close, boosted by news that ratings agency Moody’s was maintaining Spanish rating, although assigning a negative outlook. The pair spiked to $1.3099, before extending to fresh 1 month highs of $1.3124 on reported Macro account demand. Profit take sales eased, LHS euro-yen interest into the Tokyo fix added further weight and the rate dipped back under $1.3100 to settle around $1.3090. Risk sentiment continued in early Europe and the rate extened gains to $1.3119 with demand seen from Sovereign/Swiss names. The rally stalled meeting strong resistance from Eastern Europe and eased to $1.3110 where the rate settled in a tight range ahead of NY. The Asian high seen capping moves on the topside at $1.3125, through here opens $1.3147 (May 1 resistance line), ahead of strong offers at $1.3150 with stops set.
GBP: Opened early Europe at $1.6124 and stg0.8118, GBP spiked after the New York close to $1.6135 on news that Moody’s was maintaining the Spanish rating, although assigning a negative outlook. Profit take sales eased off highs and the rate consolidated above $1.6100 in thin trade as tight range trade took hold of markets. Euro-sterling lifted in early Asia to stg0.8126 on the earlier mentioned Spanish news and extended gains to stg0.8137. Cable tracked euro-dollar higher in Early Europe and lifted to $1.6141 on model account demand, before paring gains as dealers played the tight ranges. Support met in the dip and the pair ground higher ahead of BOE minutes and UK jobs data. Cable spiked to $1.6157 on release that showed officials split on need for more QE to help the UK economy, the move aided by positive jobs data. Rate consolidated and extended gains to $1.6168 on late German demand. Stops noted on a break of $1.6175, ahead of techs at $1.6182 (61.8% of $1.6309-1.5977). Euro-sterling slipped to stg0.8108 finding support ahead of stg0.8100
JPY: Opened in early Europe at Y78.66 and Y102.98, Dollar-yen opened flat in Asia before slipping in tandem with euro-yen on reported Japanese bank sales ahead of the Tokyo fix, further cross supply pressed and dollar printed lows of Y78.61. Late dip demand nudged off lows ahead of Europe. Euro-yen spiked to Y103.52 in early Asia and was boosted by news that Moody’s was maintaining Spanish ratings. Profit take sales eased, before LHS interest emerged ahead of the Tokyo fix, Japanese retail accounts added weight and the pair slipped to Y103.10. Dollar-yen was tied to a narrow Y78.63-82 range in Europe with little to inspire the pair. Rate heads into NY at Y78.74 with focus on a clean break of Y79.00 which holds strong resistance from exporters, through here triggers stops, more set at Y79.10. Euro-yen opened on a bid tone and lifted in tandem with euro-dollar to Y103.36, profit take sales eased and the cross consolidated gains ahead of NY. The Asian high seen capping moves on the topside at Y103.52, a break to Y103.64 (Rising channel upper).
EasyForexNews Research Team