EUR – Opened early Europe at $1.2958, Euro-dollar closed in NY at $1.2966 after the rate came under pressure on reaction to dovish comments from ECB Draghi at the ECB press conference, followed by Italian political wobbles, which saw rate pressed to a low of $1.2950. Euro-dollar came under early sell pressure into Asia, touching a low at $1.2956 before picking up fresh demand interest. Rate edged to a high of $1.2973 in lack lustre trade before meeting offers into $1.2975. Rate drifted off, finding support through the Asian afternoon at $1.2965 before coming under fresh pressure into Europe which eased it to $1.2960. Rate continued to trade with a heavy feel into Europe, the release of Bundesbank growth forecasts (2013 +0.4% from +1.6%) providing the added weight to take rate below $1.2950, triggering stops to $1.2929. A second wave of selling extended move to $1.2919 before it posted a low at $1.2917, then recovered to $1.2935/40. Bids seen into $1.2915, more at $1.2894 (50% $1.2661-1.3127). Resistance $1.2975/85.
GBP – Opened early Europe at $1.6053 and stg0.8072, GBP closed in NY at $1.6052 after rate had been pressed lower by euro-dollar slippage, the rate seeing lows in NY at $1.6040, though euro-sterling breaking under support at stg0.8080 to a NY low at stg0.8066 diverted a good part of the pressure. Cable came under fresh selling in early Asia with market probing for stops sub $1.6040, getting the rate to a low of $1.6035 before demand emerged to take it up to $1.6057. Rate then settled between $1.6050/55 in a typical subdued pre US jobs data market. Euro-sterling consolidated its move lower, with trade overnight contained by stg0.8070/81, pressing on the base into Europe. Cable got an early lift into Europe to $1.6060 but recovery proved short lived as euro-dollar came under renewed pressure. Release of weaker Bundesbank growth projections for 2013 weighed on the euro, taking the cross to stg0.8055, while cable retested overnight lows. Release of weak UK production data dropped cable to $1.6023, taking the cross back to stg0.8070, but sterling demand into dips continued.
JPY – Opened in early Europe at Y82.42 and Y106.81, Dollar-yen enjoyed early demand interest into Asian trading Friday, the rate pressured up from opening lows around Y82.37 to Y82.57 on Tokyo fix interest. However, this early momentum quickly faded as move ran into decent Japanese offers and eased to Y82.45. Euro-yen touched an early low at Y106.78 into Asia before Tokyo fix demand lifted it on to Y107.08. Rate then settled around Y107.00 through the early part of the Asian afternoon, later easing with the dollar to Y106.70. Euro-yen opened flat in Europe and as news filtered through from the Bundesbank downgrading their 2013 growth forecast, the cross slipped sharply to Y106.53. Tight range trade continued before the rate spiked to lows of Y106.20 as markets reacted to news of an earthquake in Japan hitting the wires. Dollar-yen mirrored the move to Y82.18, before reserve names in the dip lifted to Y82.30, extending to Y82.40. Euro-yen recovered to Y106.50 and holds firm into NY as focus turns to US jobs data released at 1330GMT.
EasyForexNews Research Team