EUR: Opened early Europe at $1.2960, Euro-dollar closed in NY at $1.2960 after easing from recovery highs of $1.2984, having seen lows into Tuesday’s Europe open of $1.2886. Demand for euro-yen into early Asia provided an early lift, allowing rate to edge to session highs of $1.2969 before Tokyo sold back into the speculated risk-on move at their open. Euro-dollar eased to $1.2955 before it settled within a tighter range of $1.2957-66. Talk that end month fixings to see euro-dollar sales prompted early selling into Europe which pressed rate down to $1.2946. However, the dip met strong demand, and with reported semi official buying (Asian sovereigns were not dollar intervention buyers in Asia and were expected to recycle into euros), the rate drove back through the overnight high. Spain PM comment on EU aid for Spain provided the trigger to take rate through Tuesday’s high at $1.2984, with triggered stops taking rate on to an eventual high of $1.3014. Corporate supply provided the counter with rate settling back around $1.3000 ahead of the end month fixings.
GBP: Opened early Europe at $1.6087 and stg0.8056, GBP closed in NY at $1.6074 after easing from recovery highs of $1.6086, off earlier session lows at $1.6021. Rate nudged back up to retest Tuesday’s high, as pre Tokyo market bought yen pairs in anticipation of a risk-on open. However, Japanese accounts sold back into the rally, pressing cable to lows of $1.6068 before rate met willing buyers that allowed it to recover through the Asian afternoon, moving to $1.6090 into the european open. Euro-sterling traded between stg0.8056/65 through Asia, off Tuesday highs of stg0.8073. Cable eased to $1.6080 in early Europe, as rate trailed early pressure on euro-dollar, which in turn took the cross to extended lows of stg0.8052, but buyers quickly emerged as euro-dollar bounced higher. Cable again trailed the move, euro-sterling driven up to stg0.80685, but release of SNB currency reserve data, showing an increase in sterling holdings, spiked rate on to an eventual high $1.6137, while the cross held firm, though off earlier highs, despite reports of end month sovereign buying.
JPY: Opened in early Europe at Y79.60 and Y103.16, Dollar-yen opened in Asia at Y79.55 and lifted on early demand to Y79.68, the rate met resistance from strong exporter offers and eased through the fix to opening levels. Support in the dip and aided by Asian sovereign demand for month end flow, rate extended to Y79.65, later settling in a tight range ahead of Europe. Euro-yen tracked dollar moves and opened on a bid tone to Y103.30, before paring early gains through the fix. Dollar-yen tracked sharp cross demand on the European open and boosted by Japanese banks lifted to Y79.81. Flow remained light and the pair eased on profit take sales, later grinding to fresh highs of Y79.84. On the topside strong offers from corporates seen capping at Y80.00, a break opens Y80.14 (30 Oct high), ahead of more offers at Y80.20/25. Strong support off the Asian low lifted euro-yen in early Europe to Y103.40, semi-official demand extended to Y103.84 in tandem with euro-dollar’s clean break of $1.3000. Profit take sales later eased ahead of the NY open following a 2 day closure.
EasyForexNews Research Team