EUR – Opened early Europe at $1.3032, Euro-dollar closed in NY Friday at $1.2986 having pivoted $1.3000 through the day within a range of $1.3029-1.2968, with month end dollar demand providing a counter against further upside gains. Rate drifted off to $1.2973 into early Asia Monday before picking up demand that lifted it back to $1.3000. Demand for euro-Aussie was cited for the move through $1.3000, with upside momentum gaining pace as rate pushed through $1.3025/30, the move triggering stops above $1.3040 which took rate on to $1.3048. Option barrier interest at $1.3050 drew protective selling ahead and squeezed rate back to $1.3027, with early Europe adding further weight to extend correction to $1.3022. Fresh demand emerged ahead of EMU PMI data to take rate back to $1.3041 only to get knocked lower as releases disappointed. Euro-dollar dipped back to $1.3020 before picking up fresh demand, the recovery edging on to $1.3049 but was again met by stiff resistance ahead of $1.3050. Pullbacks remain shallow and keep upside in focus.
GBP – Opened early Europe at $1.6027 and stg0.8128, GBP closed in NY Friday at $1.6013, able to finish the week back above $1.6000 after a brief dip to $1.5988, with early trade into Asia Monday seeing it ease off to $1.6005 as it tracked euro-dollar. Rate recovered, upside momentum boosted as euro-dollar spiked to $1.3048 and stops were triggered above $1.6035, the move taking cable on to $1.6048 before meeting decent resistance from offers placed toward $1.6050. Rate drifted off to $1.6027 where it found some support ahead of the European open. Fresh demand into Europe lifted it to$1.6044, dipping to $1.6030 before drawing stronger demand that edged it on to $1.6051 ahead of UK PMI data. Release of disappointing EMU PMI data weighed on the euro and eased euro-sterling from stg0.81315 to stg0.8120, which along with expected HSBC sterling dividend demand into 1100GMT, helped support cable. Stronger than forecast UK PMI data lifted rate to $1.6059 but met offers placed ahead of $1.6060/65. Pullbacks remained shallow, rate retaining its buoyant tone into the 1100GMT fix.
JPY – Opened in early Europe at Y82.33 and Y107.26, Euro-yen was a key mover through the Asian session with rate pushing up from an early posted low of Y106.77. Triggered stops through Y107.30 provided the added momentum to take it up to session highs of Y107.53 before rally strength faded, the rate later eased to Y107.24. Dollar-yen pushed to an early high of Y82.51 on the euro-yen rally but move was met by decent supply from a north Asian sovereign. The pullback to Y82.33 ran into Japanese importer demand which bounced rate back to Y82.47, later easing to Y82.26. Dollar-yen opened flat in Asia before sentiment turned on soft eurozone PMI data, cross supply added weight and the pair slipped to Y82.10. Rate later bounced to Y82.20 but with the underlying tone seen heavy dollar soon came under renewed pressure, printing lows of Y82.00. Euro-yen made a show under Y107.00 on the soft data, before extending recovery pullback efforts. Euro-dollar’s failure to break $1.3050 and move lower pressed the cross to Y107.10, later extending losses to Y106.90 and sit heavy ahead of NY.
EasyForexNews Research Team