EUR: Opened early Europe at $1.2995, Euro-dollar opened flat in Asian trade and remained in consolidation mode, before the pair lifted on sharp cross demand to $1.2985. The rate met a wall of offers and aided by profit take supply eased to $1.2967, support in the dip later recovered to $1.2988 ahead of Europe. Risk sentiment in early European trade lifted euro-dollar through $1.3000, extending to $1.3014 on model account demand. Profit take sales later eased to opening levels, before the rate bounced on strong cable gains and extended recovery attempts to print session highs of $1.3023. The underlying tone remains buoyant with reported offers at $1.3025 and stops set on a break, through here opens more offers at $1.3035/40, stronger behind at $1.3050. Data flow light in the US today with highlights from Initial Jobless claims and Durable Goods, released at 1230GMT.
GBP: Opened early Europe at $1.6060 and stg0.8090, GBP opened heavy and squeezed lower in early Asia to $1.6028, before the rate bounced in tandem with euro-dollar to $1.6045. The pair sat in a tight 10 pip range for the remainder of the session, before late
demand boosted through resistance to $1.6051. Euro-sterling was tied to a narrow stg0.8085 -0.8095 Asian range with very little action to inspire the pair. Risk appetite increased in Europe and cable lifted with euro-dollar to $1.6075 in early trade. The rate consolidated gains ahead of UK GDP data for Q3, where expectations were for the economy to lift out of recession. Cable spiked to $1.6128 on strong data release that showed economic growth rise at its fastest pace for five years. Rate extended to $1.6135 before meeting strong resistance from Asian names and slipped to $1.6110. Dip demand led recovery attempts and the pair heads into NY on a buoyant tone. Euro-sterling slipped to stg0.8061 on release and sits heavy with strong demand seen into stg0.8050.
JPY: Opened in early Europe at Y80.06 and Y104.06, Dollar-yen opened on a bid tone in early Asia and the rate lifted on cross demand through the Tokyo fix to print highs of Y79.95. The pair consolidated, before extending gains to fresh 4 month highs of Y80.12 on headlines from the BOJ that they are considering a Y10 Tln increase in its asset-purchase program. Strong demand through the Tokyo fix lifted euro-yen to Y103.85, before the rate eased on profit take sales. Support met in the dip and aided by dollar-yen’s move through Y80.00, the cross extended recovery attempts to Y104.14. Early demand in europe from Macro/Middle-Eastern names lifted dollar-yen to Y80.18, before easing with the cross to Y80.10. The rate consolidated gains and ground to highs of Y80.21, before late profit take sales pared gains. Early dollar demand lifted the cross to Y104.25 as risk appetite increased across Europe, the rate extended to Y104.43, before meeting German name supply and settled around Y104.30 ahead of NY.
EasyForexNews Research Team