EUR: Opened early Europe at $1.2956, Euro-dollar closed in NY Friday at $1.2972, just off extended rally highs of $1.2991. Early Japanese demand for euro-yen into the Tokyo fix Monday sent this pair through Y107.00 which in turn pulled euro-dollar higher, though failed to gain enough momentum to challenge Friday’s high, the upside pressure fading around $1.2977. Euro-yen drifted lower post fix which dragged euro-dollar down to $1.2951 before it settled around $1.2960 ahead of the European open. Asian stops sub $1.2950 were targeted into early Europe with rate dipping to $1.2944 before east European buyers emerged to take rate up to $1.2985. Failure to stretch on to $1.2991 saw sellers quickly move in to press rate down to $1.2946 before it settled between $1.2950/70 into late morning dealing. Market remains upbeat that today’s Eurogroup will announce progress toward a Greek solution and allow next tranche of aid, which has provided buoyancy in euro-dollar. The euro seen generally strong via crosses, the underlying buoyant tone toward the euro reflected in these pairs.
GBP: Opened early Europe at $1.6019 and stg0.8087, GBP closed in NY Friday at $1.6033 after rate had powered higher to $1.6051 as it played catch-up on euro-dollar’s recovery while euro-sterling’s recent rise struggled to build above stg0.8100 (high Friday stg0.8108, closed stg0.8090). Cable consolidated Friday’s move in Asia with trade contained within a range of $1.6019/38, though it was sitting heavy on the base of that range into Europe. Euro-sterling trade was contained by stg0.80825-0.8095, trading around stg0.8088 into Europe. Cable edged up to $1.6035 in early Europe, taking direction from euro-dollar’s initial rally into Europe, only to turn lower and break below the Asian base, extending the move to $1.6002. Initial recovery efforts were restricted to $1.6017, with a retest on the lows prompting a stronger bounce to $1.6020. Moves continued to track euro-dollar as euro-sterling was contained within stg0.8082-0.8100. Markets remain upbeat that today’s Eurogroup meeting will produce a positive development for Greece though rates remain off Friday’s highs, await confirmation.
JPY: Opened in early Europe at Y82.14 and Y106.43, early demand for dollar-yen and euro-yen into the Asian session, with strong demand interest noted from returning Japanese accounts (Japan holiday Friday) into the fix, saw dollar-yen push to a high of Y82.62, while euro-yen targeted the barrier at Y107.00, with stops above triggered to take this rate on to extended highs of Y107.14. Post fix and yen regained part of its early losses, dollar-yen drifted off to Y82.20, euro-yen to Y106.50. Recovery attempts faltered at Y82.38 and Y106.76 before heavier sales emerged to press rates down to Y82.07 and Y106.26 respectively. Dollar-yen opened soft in Europe and slipped to Y82.10, supply from corporates/leveraged/real money names added further weight and the rate extended losses to Y81.92, flushing light stops on the move. Dollar bounced to Y82.10 but met resistance from a semi-official and settled around Y82.00. Middle-Eastern supply pressed euro-yen to Y106.09, before meeting tech support from the 5-day ma and lifting to Y106.40. Late trade eased to Y106.30 ahead of NY.
EasyForexNews Research Team