Closed NY at $1.2903 after rate had eased off a recovery high of $1.2924 to $1.2885 before settling into tight range around $1.2900 into close. US weather conditions made for expected subdued trade which carried over to early Asia. Rate began to pick up demand into the Tokyo fix as it reacted to euro-yen demand, edging to $1.2919 high before momentum faded. Rate eased off to $1.2910, recovered to $1.2916 before dropping back to $1.2900. Brief recovery to $1.2916 then saw rate drop to $1.2888 as euro-yen sold off on reaction to BOJ policy easing. Rate holds heavy into early Europe, currently trading around $1.2893. Talk Monday suggested interest to buy short dated DNT option structures with parameters set at$1.2880-1.2930 for Wed maturity, with NY weather situation closing Wall Street for 2nd day expected to leave markets on hold around $1.2900. Bids $1.2885/80 with CTA stops now noted on a break of $1.2870, though if triggered expected to meet demand on approach to $1.2850. Larger stops $1.2840. Offers $1.2930-50.
EasyForexNews Research Team