EUR – Closed in NY Friday at $1.3464 after easing off extended NY session highs of $1.3480, with rate buoyed above $1.3450 into the close. Early sales into Asia saw rate squeeze down to pressure stops under $1.3450, taking the rate to overnight lows of $1.3443 before fresh demand emerged. Rate recovered to $1.3470 before meeting resistance with rate then settling between $1.3450/70 through to the European open. Rate had edged back to $1.3468 into Europe, the recovery quickly attracting sell interest, with profit take sales of yen crosses leading the way, which took rate to an initial .low of $1.3440. Recovery efforts remained laboured with rate then easing on to $1.3430 before finding a base at $1.3425. Demand at $1.3425/20 cushioned the move and allowed for a slow recovery to $1.3435 before east European buying emerged to provide a recovery boost. Rate edged back above $1.3450, but was seen meeting headwind sales between $1.3450/60. Offers remain in place between recent highs of $1.3470-80, stronger toward barrier interest at $1.3500. Support $1.3425/20, $1.3405/1.3390.
GBP – Closed in NY Friday at $1.5799, off a session recovery high of $1.5827, after rate had been pressed to extended lows of $1.5745 following the release of disappointing Q4 GDP data. Early Asia pressured cable off an opening high of $1.5795, the early market, especially, thinned by the Australia Day holiday, with sales taking the rate down to $1.5756 before it picked up fresh demand interest that allowed it to recover to $1.5786. The recovery proved short lived with sales then pressing the rate back to $1.5754 before it settled between $1.5755/70 ahead of the European open. Euro-sterling, which has been seen as the lead pair during sterling’s recent depreciation, extended its recent rise, trading to stg0.8548 in Asia (Fri high stg0.8536). Dovish comments from BOE Governor in waiting Carney weighed on sterling into Europe, with barrier interest at stg0.8550 attracting the early interest. Rate traded to stg0.8555, as stops between stg0.8550/55 were triggered, but profit take sales pressed rate quickly back to the stg0.8540 area. The move in the cross pressed cable down to $1.5716, with recovery attempts capped below $1.5750. Bids seen toward $1.5700 barrier interest.
JPY – Dollar-yen achieved a technical target at Y91.20 (Mar’12 high) on Friday, the extended rally meeting profit take selling here which countered further upside gains. The rate eased k to Y90.77 but the underlying buoyant tone remained in place into the close at Y90.90. Fresh demand into Asia edged rate back to retest Friday highs, a push from around Y91.10 able to extend move to Y91.26 before momentum faded. Rate dipped to Y90.85 before it settled in a range around Y91.00 ahead of the European open. Offers now seen to Y91.30, stronger toward large barrier interest at Y91.50. Euro-yen extended its recent recovery to Y122.91 in Asia (NY high Y122.78) with rate easing off highs to settle between Y122.20/60 into Europe. Traders remain open to reaction from Japanese officials, ex-EconMin Takenaka reported saying in the WSJ that yen has room to fall further toward Y95.00 (Takenaka a speculated candidate for new BOJ Governor). Profit take demand for yen, mainly via the crosses, drove yen pairs lower into Europe, dollar-yen extending down to Y90.57, euro-yen to Y121.63. However, buyers have been lurking to take advantage of dips with rates holding off lows ahead of the NY open.
EasyForexNews Research Team