EUR – Closed in NY Friday at $1.3370, having extended its corrective pullback to $1.3353 during the session, before performing a slight recovery into the close. Stops below $1.3350 became the early target into Asia, tripped stops taking the rate to extended lows of $1.3325 before profit take demand emerged to correct it back above $1.3350, extending the move to $1.3380 before momentum faltered. Rate then settled between $1.3365/80 through the balance of a fairly quiet session, Japan, and several Chinese centres closed for new year, making Sydney the only major centre open. Rate picked up demand into late Asia which took it on to $1.3392 before momentum faltered again. Strong selling in cable weighed on euro-dollar, taking it to pullback lows of $1.3357 before strong demand emerged via the crosses to edge rate back toward the earlier highs. This buying extended the topside to $1.3405 by late morning, but reported Asian sovereign supply here provided the cap ($1.3405 76.4% $1.3430-1.3325). Cross activity in an otherwise quiet data day has provided the main trade impetus. Euro-dollar bids $1.3350, stonger between $1.3325/15. Resistance $1.3405, $1.3425/30.
GBP – Closed in NY Friday at $1.5801, after rate had seen highs in the NY session of $1.5845, easing back to $1.5792 before recovering into the close. Sterling’s recent poor performance was given some respite, Mark Carney’s appearance before the TSC Thursday showed him to be less dovish than had been perceived and prompted a paring of short sterling positions into the weekend. Sterling’s buoyancy was also aided by euro-sterling getting pressed to lows in NY of stg0.8447, with this rate consolidating the move between stg0.8442-70 in Asia. Cable saw early Asian lows of $1.5785, though recovery back above $1.58000 proved laboured, topping out at $1.5810. Strong cable sales emerged into early Europe, quickly taking the rate through overnight lows, with triggered stops sub $1.5770 providing the weight to take rate on to challenge support into $1.5750. The break here prompted momentum accounts to add weight before rate found support ahead of $1.5700 (low $1.5703). Rate managed to hold above its 100-hma at 1000GMT ($1.5712) which relieved cable of another round of selling, though recovery efforts remained very shallow. Euro-sterling broke above stg0.85, but met decent resistance into stg0.8530.
JPY – Trade in a holiday thinned Asian session (Sydney the only major centre open due to Chinese new year and Japan Natl Foundation Day) kept rate confined to a Y92.37/90 range, the high seen in opening dealings before rate sank to session lows on euro-yen profit take sales. Euro-yen posted highs of Y124.10 in early trade before turning lower on the reported profit take sales to Y123.50. Yen pairs later recovered to Y92.65 and Y124.00. Dollar-yen opened flat in Europe, the rate found support ahead of Y92.50 and climbed to Y92.70. Sharp cross demand extended gains, leveraged names gave a further boost through Y93.00 as the pair flushed light stops on the move. Momentum continued and the pair triggered more stops above Y93.20 on the way to session highs of Y93.39. Euro-yen lifted through Y124.00 with ease in brisk European trade and extended to Y124.60 on earlier mentioned cross demand. Reported Middle-Eastern names on the bid lifted to highs of Y125.07 as the underlying tone remained buoyant ahead of New York.
EasyForexNews Research Team