EUR – Closed in NY at $1.3082, off pullback lows of $1.3057 seen during the NY session, after rate had seen earlier Asian highs of $1.3140. Rate was seen steady into early Asia around $1.3080 before edging up to challenge reported offers placed between $1.3090/00. Rate touched a high of $1.3091 before momentum faded and it eased off to $1.3066, settling in the low $1.3070’s through most of the Asian afternoon session. Rate picked up late demand that took it back to $1.3087 ahead of the European open. Euro-dollar was basically sidelined during the Asian session with most interest seen in yen, Aussie and Kiwi. Early Europe took advantage of the recovery in euro-dollar, selling it back to retest overnight lows before fresh demand emerged. Slow recovery saw rate manage to extend highs to $1.3096 before momentum faded and rate reversed lower again. Move back to $1.3066 picked up momentum as short term specs were squeezed, but demand at this low again cushioned the base and allowed rate to recover and settle back between $1.3070/80 ahead of German IP data at 1100GMT. ECB Thursday overshadows.
GBP – Closed in NY at $1.6055 after recovering off traded lows at $1.6029, the rate having seen highs earlier in the day at $1.6129. Tuesday had seen corrective action following on from Monday’s move into risk positions, with main corrected moves overnight led by a yen recovery. A quiet start in Asia saw early trade held within $1.6050/60 before rate edged up with euro-dollar to mark overnight highs at $1.6069. Rate drifted lower through the session, marking lows at $1.6037 (76.4% $1.6029-69) before recovering to $1.6058 ahead of the European open. Euro-sterling was held between stg0.8143/53, leaving cable to basically track euro-dollar moves, though action in this latter pair overnight was described as subdued. Rate eased off in early Europe to $1.6044 before picking up demand interest that edged it eventually through the overnight high and on to $1.6075 ahead of UK trade data release. Disappointing data had only a minimal effect on cable as euro-sterling came under sell pressure, the rate easing below its Asian base to stg0.8134 late morning. This cross move provided cable some buoyancy as euro-dollar slipped late morning.
JPY – Dollar-yen re-tested NY recovery highs of Y87.12 before turning lower with stops below Y86.90 targeted and triggered, the rate later based at Y86.83. The pair bounced as chat emerged there is a Y86.75-90.75 DNT option structure in the market (expiry week of Mar4-7), Japanese demand and RHS interest into the Tokyo fix all aided recovery attempts to Y87.45. Profit take sales eased before fresh demand in euro-yen lifted to Y87.55, support from a US custodial also recorded in the move. Euro-yen tracked early dollar moves and flushed stops through Y114.35 to print Asian highs of Y114.52 ahead of Europe. Once again, European markets were quiet with dollar-yen tied to a narrow Y87.41-74 range. Reported demand from Japanese names extended the slow grind to intraday highs, but offers ahead of Y87.80 capped moves and the rate eased to Y87.55. After slipping to early lows of Y114.31, euro-yen bounced and extended the recovery to Y114.79, later easing with the dollar to settle in a tight range.
EasyForexNews Research Team