EUR: Opened early Europe at $1.3068, Dollar demand into the Tokyo fix weighed on the pair in Asian trade, the rate slipped to $1.3058 and a re-test of yesterday’s spike low. Support in the dip and aided by macro demand recovered to $1.3070, where the pair settled in a tight 15 pip range ahead of Europe. Euro-dollar opened soft in Europe and squeezed lower on US name supply, triggering light stops on the move. Comments from BOJ Governor Shirakawa on worries of overseas economies added weight and the pair printed lows of $1.3046, before demand in the dip from an Asian sovereign led the recovery. Spec names extended pullback efforts to $1.3075, before easing on profit take sales. Rate settled in a tight range ahead of NY with focus on the EU summit and expected headlines for direction. On the downside strong demand remains into $1.3050, bids behind at $1.3040 with stops on a break. The Asian high seen capping moves on the topside at $1.3077, through here opens offers at $1.3100 with light stops set.
GBP: Opened early Europe at $1.6061 and stg0.8142, GBP was tied to a very narrow $1.6041-66 Asian range with very little action to excite the pair as traders look to headlines from todays EU summit for further direction. Profit take supply and traders squaring positions ahead of the weekend weighed on euro-sterling in early Asia, the rate slipped to stg0.8137 and settled in a tight range. Cable opened heavy in Europe and squeezed lower on model account supply to $1.6032, the move was cushioned by bids seen into $1.6025 and bounced in tandem with euro-dollar. Recovery attempts extended to $1.6067, before profit take sales eased ahead of the NY open. Tech resistance seen at 1.6087 from the 5 dma, a break opens offers at $1.6095/00. Early fund demand lifted the cross to stg0.8146 but any moves higher were countered by strong resistance ahead of the stg0.8150 barrier. The pair ground lower throughout a quiet European session to settle around stg0.8125.
JPY: Opened in early Europe at Y79.33 and Y103.70, Dollar-yen opened flat in Asia before lifting on sharp demand ahead of the Tokyo fix to Y79.41, the rate met strong resistance from the 200 dma and eased to Y79.35. Euro-yen slipped in early Asia to Y103.60, before lifting in tandem with dollar-yen through the fix to Y103.80, the cross later stalled and settled in a tight 20 pip range ahead of Europe. Dollar-yen was tied to a very narrow Y79.26-37 European range with little action to excite the pair. Early dollar demand was countered by cross supply and the rate ground to Y79.26 ahead of NY. Support seen into Y79.20, a break opens a deeper move towards bids at Y79.05/00. Euro-yen largely tracked euro-dollar moves and squeezed to Y103.46, before the rate recovered to Y103.75. Profit take sales eased off highs, macro supply added further weight and the cross extended to fresh intraday lows of Y103.36. Traders look to headlines from the EU summit for market moves.
EasyForexNews Research Team