EUR: Opened early Europe at $1.2924, Euro-dollar closed in NY at $1.2944 after recovering off a stop driven low of $1.2915 as trade through Thursday eased away from the initial react highs of $1.3010 following Monday’s Eurogroup Greece debt action. Rate came under pressure into early Asia as non-Japanese leaned into dollar-yen and euro-yen, the sales of the latter pressing euro-dollar to $1.2922 into early Europe, extending to $1.29115 in the transition. Analysis of the Eurogroup/Greece debt program showed up short comings in the agreement and was seen weighing back on the euro, as well as Fiscal Cliff concerns that were seen weighing on risk. Euro-dollar recovered to $1.2938 but move met Russian supply which continued to knock it back to the $1.2920 area on moves back above $1.2930 through the morning. Euro-dollar demand remains in place into $1.2910, with stronger interest noted between $1.2890/80. Resistance $1.2940/50.
GBP: Opened early Europe at $1.6000 and stg0.8077, GBP closed in NY at $1.6024 after recovering off a late dip low of $1.6010. Cable had been pressed lower in NY on the back of euro-dollar slippage, though reports of Dutch PB sales of euro-sterling (this rate pressing down to stg0.8060) had provided some buoyancy in the move lower. Cable touched a high of $1.6025 into opening Asian trade before easing, the pressure seen from euro-yen/euro-dollar sales which weighed on cable as the cross consolidated within a tight stg0.8070/80 range. Cable squeezed to an initial low of $1.6009 with recovery efforts from this area capped ahead of $1.6020 before it pressed down to $1.5995 ahead of the European open. Rate edged back above $1.6000 into Europe but recovery efforts remained capped below $1.6020 with some linking resistance to a major Asian sovereign, possibly linked to a large $1.6000 strike expiry at the NY cut. Rate settled around $1.6010 for the balance of the morning, buoyed in part by euro-sterling holding below stg0.8080.
JPY: Opened in early Europe at Y81.82 and Y105.70, Dollar-yen opened in Asia at Y82.06 and lifted to Y82.21 on demand ahead of the Tokyo fix. The rate stalled and supply from leveraged names pared light gains, Japanese retails extended losses to Y81.78 flushing stops on the move. European demand cushioned and the rate settled in a tight range. Euro-yen lifted to Y106.35 ahead of the fix, before sharp cross supply triggered stops through Y106.00 to Y105.72. Late trade extended losses to Y105.52 on euro-dollar’s stop run, before support in the dip recovered. Dollar-yen opened firmer in Europe and lifted to Y81.95, profit take sales eased off highs and extended losses on cross sales to Y81.71. Dip demand later recovered to Y81.87 and the rate sits heavy ahead of NY. Strong bids seen into Y81.70 with stops set on a break. Euro-yen made a show above Y106.00 before easing with the dollar to Y105.80, Russian name supply in euro-dollar added further weight to print Y105.56, later bouncing to Y105.80.
EasyForexNews Research Team