EUR – Closed in NY Wednesday at $1.3133 after rate had extended its recovery through the session to an eventual high of $1.3148, the move able to brush aside ECB Draghi comments that the ECB is ‘far’ from exiting stimulus. This recovery extended into early Asia, euro-yen demand taking the rate through $1.3150. Stops above here took rate on to $1.3163. The rise stalled above $1.3160 (Ichimoku hourly cloud), with traders noting Asian sovereign supply in this area. Rate drifted lower, aided by euro-yen reversing post fix, though corrective pullback met demand around $1.3140. Fresh demand emerged into the dip allowing rate to settled around $1.3150 ahead of the European open. Rate bounced between $1.3132/52 in early Europe before rate came under heavier sell weight. Euro-yen was cited providing the initial selling with macro names adding to the down move which took it through support at $1.3120. Stops extended the move to $1.3106 but strong demand into $1.3100 cushioned the move and allowed for a recovery to $1.3127. However, this move met fresh supply with stops below $1.3100 viewed as vulnerable. Move lower seen despite reports end month fixings to see RHS interest.
GBP – Closed in NY Wednesday at $1.5161 after it had recovered through the earlier part of the session from Asian lows of $1.5080 to $1.5188, dropping to $1.5120 before leveraged and bank name demand allowed it to recover into the close. This late recovery extended in early Asia, though the move up was seen less steep that the recovery in euro-dollar. However, cable traded to an overnight high of $1.5178 before it settled between $1.5160/70 ahead of Europe. Euro-sterling opened Asia around stg0.8661 before it edged to highs of stg0.8677, settling for the balance of the session between stg0.8665/75. Cable attracted decent demand into Europe, the demand lifting the rate to a high of $1.5203, as euro-sterling moved down to squeeze spec longs (positioned long for expected demand into the month end), easing this rate to lows of stg0.8638. A reversal lower in euro-dollar weighed back on cable, the sell off taking the rate through the Asian low of $1.5160 to $1.5152. However, with euro-sterling retaining a heavy tone it provided support which kept cable buoyed above $1.5150. The cross was holding around stg0.8642 in late morning trade, cable around $1.5165.
JPY – Yen pairs opened the Asian session on a bid tone, dollar-yen resumed its recovery seen through Wednesday and extended to Y92.67 on Japanese bank demand ahead of the Tokyo fix. Euro-yen tracked the move, touching a high of Y121.83, before month end related sales post fix pressed to Y121.12, taking dollar-yen to 92.18. The pairs later recovered and settled around Y92.40/Y121.50. The Japanese government nominated ADB Kuroda to be the next BOJ Governor, this announcement had been expected and caused little to no reaction. The yen pairs remained in consolidation mode with trade tied to narrow ranges in early Europe. Fresh supply in euro-yen from reported macro names pressed sharply, the move linked to month end position adjustment took the rate to lows of Y120.64. Stops flushed along with unsubstantiated market rumours of a Dutch sovereign downgrade weighed heavily, dollar mirrored the move to print Y92.01. Dip demand led recovery attempts and the the pairs settled around Y92.20/Y120.95 ahead of the NY open.
EasyForexNews Research Team