EUR – Opened early Europe at $1.3002, Euro-dollar closed in NY at $1.2979 after recovering off a corrective pullback low of $1.2945 after pulling back from an intraday high of $1.3015 in late Europe. Rate initially eased to $1.2970 in early Asia, as rate took direction from early macro sales of Aussie, only to meet decent demand linked to euro-yen and euro-Aussie demand. Rate recovered to an eventual high of $1.3007 before drifting off on mild profit take sales only to meet fresh demand into $1.2990 and edging back to retest the earlier highs into Europe. Release of disappointing German retail sales data knocked rate down to $1.2992 but dip quickly attracted buyers as market switched attention to stops through $1.3015/20. The triggering took rate on to $1.3028 before meeting middle eastern and Asian supply. Rate settled back to $1.3020, getting a late morning squeeze to retest $1.2992 but European exporters were willing buyers into the dip as it edged back above the figure ahead of the NY open. Euro’s buoyant tone remains in place ahead of the NY open.
GBP – Opened early Europe at $1.6045 and stg0.8103, GBP closed in NY at $1.6042 after rate recovered off late Europe pullback lows of $1.6014, settling around $1.6040 through the most part of the US afternoon. Rate eased to $1.6035 in early Asia before it picked up demand interest which pressured it up to retest Thursday’s high at $1.6048, extending topside to $1.6049. Rate settled between $1.6040/50 into Europe before Asian sovereign demand extended the rate through recent highs at $1.6056 and on to $1.6062. Rate drifted off highs, meeting further demand into $1.6040 which kept it buoyed through the main part of European morning trade. Euro-sterling recovered off early Asia lows at stg0.8087, edging to stg0.8104 as traders positioned for expected end month demand. Rate dipped under stg0.8100 only to edge on to stg0.81145 in early Europe, but offers at stg0.8115/25 countered. A quick dip to stg0.80995 then spike to stg0.81165 was seen on fix manipulation trade. The recovery pressed cable down to $1.6022, but settled back at $1.6040 ahead of NY, the cross around stg0.8108.
JPY – Opened in early Europe at Y82.45 and Y107.16, early Asian sell interest for dollar-yen and euro-yen was quickly reversed as Japanese trust banks and investors emerged as strong buyers. Those that tried to oppose through Y82.10-25 had to quickly reverse tack and cover shorts, the added demand flushed stops to highs of Y82.55 and Y107.30. Month-end flow and Softbanks’s acquisition also seen atributed to the move. Dollar-yen later eased to Y82.34, euro-yen to Y107.02 with both pairs retaining an underlying buoyant tone. Risk appetite increased in early Europe and with talk of a large Y82.90 one touch option structure rolling off for the NY cut, dollar ground to highs of Y82.75. Offers ahead of the Y82.80 barrier capped moves and the rate eased to Y82.60 amid light flow. Euro-yen opened sharply higher to Y107.40 and extended gains to fresh 7 month highs of Y107.67, before late profit take sales eased. On the topside stops noted through Y107.80, a break opens offers ahead of the Y108.00 barrier.
EasyForexNews Research Team