EUR – Closed in NY at $1.2957, after rate had extended 2013 lows to $1.2924, recovering to $1.2971 before drifting off into the close. A fairly quiet start into Asian trading with early dealing confined to a tight $1.2955/65 range. Rate broke to $1.2982 as it took direction from Aussie dollar’s positive react to stronger than expected Australian jobs data, but momentum quickly faded and allowed it to drift to the $1.2960 area. Further selling then pressed rate to session lows of $1.2943 before recovering toward the $1.2960 area again ahead of the European open. Recovery extended to $1.4969 in early European dealing, only to get repulsed back to $1.2947. Rate bounced again, pushed on to $1.2977 before momentum faded ahead of the overnight highs at $1.2982, the rate then turning lower for a retest on overnight lows at $1.2943. Level held and allowed rate to again edge back to the day’s opening levels close to $1.2960. Spanish bond auction came and went without any pain, attention now turning toward US jobless claims at 1230GMT. Euro-dollar demand seen between $1.2943/38 ahead of $1.2925/20. Resistance $1.2977/82.
GBP – Closed in NY at $1.4917, seen after rate had managed to extend its recovery off recent lows at $1.4832 (Tues Mar12) to $1.4982, the move seen mainly driven by a sharp corrective pullback in euro-sterling. Pressure on euro-dollar through the NY session, following release of strong US retail sales data, weighed on cable, and with the cross meeting support at stg0.8665/60, allowed it to ease off to $1.4908 (50% $1.4832-1.4982) ahead of the close. Cable picked up fresh demand in Asia, the rate able to edge to $1.4957, aided in part by the boost to risk appetite provided by the release of strong Australian jobs data, before it met sell interest placed between $1.4955/65. Rate drifted off in tandem with euro-dollar to $1.4928, edging back around $1.4940 into Europe. Euro-sterling consolidated its break back under stg0.8700 in Asia, dealing contained within stg0.86685-0.8685, opening Europe at stg0.8670. Cable pushed up to retest Asian highs, extended the topside to $1.4958 (Asia $1.4957) before turning lower, the pullback easing below the Asian base to $1.4912 before edging back toward $1.4950 late morning. Traders note that a large $1.4950 strike
option for Friday maturity exerting influence
JPY – Dollar-yen came under early pressure in Asia with the aussie-dollar boosted by positive Australian jobs data. Some attributed the move to repatriation flows ahead of FY end (end March) as the rate pressed to lows of Y95.69. Euro-yen tracked the dollar and slipped to Y124.05, before demand in the dip extended recoveries to Y124.40 and Y96.05. In other news overnight, the lower house in the Japanese parliament verified the three proposed heads of the BOJ and are awaiting upper house approval, although this is expected to get through. Yen weakness was prominent around the European open as the dollar jumped to Y96.20, extending through resistance to highs of Y96.53. Euro-yen lifted with euro-dollar and made a show above Y125.00 to print highs of Y125.24, before tech resistance stalled, profit take sales added weight settling around Y124.80, dollar-yen Y96.40. Late supply extended losses to Y124.50 and Y96.30 respectively.
EasyForexNews Research Team