EUR – Opened early Europe at $1.3083, Euro-dollar closed in NY at $1.3072 after easing off post FOMC react highs of $1.3097, finding support ahead of the close at $1.3060. Opening trade in Asia saw rate pivot $1.3070, dipped to $1.3056 before picking up fresh demand which lifted it to $1.3091 before it settled between $1.3080/90 ahead of the European open. The FOMC dovish tone prompted further dollar sales into Europe, taking euro-dollar up to retest Wednesday highs, touching $1.3098 before meeting decent resistance. Rate slipped to $1.3077 before picking up stronger demand that took rate to $1.3200 ahead of the SNB policy announcement. Hopes were running high that they would lift the Chf1.2000 floor and/or ease the LIBOR target range and provided the boost, but move met Swiss sellers and as SNB left everything unchanged prompted specs to cover back. Clear under $1.3080 extended correction to $1.3058, but buyers were waiting between $1.3060/50. A brief recovery to $1.3074 proved short lived with rate pressing to $1.3047 late morning with underlying tone remaining heavy.
GBP – Opened early Europe at $1.6145 and stg0.8104, GBP closed in NY at $1.6150 after the rate had seen highs of $1.6172 post FOMC, with pullbacks supported at $1.6134 ahead of the close. Rate came under pressure into early Asia, pivoted $1.6140 before getting pressed to extended lows of $1.6125. Move met decent support, recovered to $1.6146 ahead of the European open. Euro-sterling extended its recovery to stg0.8100 in NY Wednesday, as cable lagged euro-dollar’s post FOMC reaction, then consolidated this move between stg0.8097 -0.8109 in Asia, with stronger resistance noted between stg0.8110/20. Cable retested the Asian highs in early trade before turning lower, the move down gaining momentum as the SNB decision to leave rates/euro-Swiss floor unchanged prompted profit take selling across the board which took cable down to $1.6114. The move down trailed euro-dollar and allowed the cross to ease below stg0.8100. Cable recovered above $1.6120 late morning, while the cross consolidated below stg0.8100 ahead of NY.
JPY – Opened in early Europe around Y83.66 and Y109.45. The eventual break above Y83.00 Wednesday, as the pressure pot burst under the weight of buying, saw rate hit initial highs at Y83.20, with reaction to the FOMC announcement fairly muted thereafter as rate extend move to Y83.30. Rate was holding firm into the close, early Asia provided some counter and eased it to Y83.13 before stronger demand emerged into Tokyo which took rate through barrier interest at Y83.50 and on to Y83.67 into the European open. Euro-yen closed in NY at Y108.77, after making a brief show above Y109.00 post FOMC. Soft yen and strong euro acted to boost this rate’s recovery through Asia to Y109.46, meeting resistance ahead of Y109.50. Early demand into Europe allowed rate to edge to Y109.54, taking out any barrier interest at Y109.50, with rate then pulling back to Y108.85 as euros were sold back on disappointment that the SNB left euro-Swiss floor and LIBOR target range unchanged. The cross extended lows to Y108.64, dragging dollar-yen to Y83.25. Yen a key driver in Europe, now awaits US for next direction.
EasyForexNews Research Team