EUR – Closed in NY at $1.3004 after rate had recovered through the NY session from lows of $1.2911 to $1.3032 as the dollar gave back some of its recent gains, with yields in UST easing off recent highs. Rate remained buoyed above $1.3000 into Asia before it slowly stepped its way up to overnight highs of $1.3027, settling between $1.3010/20 into Europe. The Asian session was fairly subdued, consolidating Thursday’s recovery. Fresh demand emerged into Europe that took rate to early highs of $1.3042 before momentum faded. Rate dipped back to $1.3010 before macro demand emerged into the dip to pressure rate back above $1.3040. Offers at $1.3050 thebn $1.3060 provided minor hurdles as rate continued to climb, touching $1.3070 at writing. Offers between $1.3070/80 reported, with stops above, with most looking to fade around the $1.3075 area. A break of $1.3135 preferred to negate the current underlying bearish outlook. US CPI data, along with Empire State at 1230GMT, TICS at 1300GMT then US IP/Cap.Ut at 1315GMT.
GBP – Closed in NY Thursday at $1.5076 after rate had performed an impressive recovery from intraday lows of $1.4915 to a high of $1.5119. For most of Thursday’s session the rate appeared to have been anchored by a large $1.4950 strike option expiry for today’s NY cut, with knowledge of another large expiry at $1.5100 for Monday’s maturity pushed into the background. Option expiries for today’s NY cut include that mentioned $1.4950 strike as well as one at $1.5100 and a large $1.5150. In Asia cable managed to make a brief show back above $1.5100 to $1.5105 before drifting off to $1.5069 during the Asian afternoon. Rate recovered, edging to $1.5089 into Europe before fresh demand extended the move through the NY high and on to $1.5144. A corrective pullback to $1.5110 quickly attracted fresh demand with fund interest emerging to take rate to $1.5150. Asian sovereign sell interest here only provided a mild counter before rate edged on to $1.5169. Pullbacks remained shallow and was seen keeping focus on the upside, a retest of Mar5 highs of $1.52 viewed as possible. Euro-sterling saw lows of stg0.8612 Thursday, consolidated this move between stg0.8615-0.86365 in Asia before Europe extended lows to stg0.8603 then bounced to stg0.8625.
JPY – Dollar-yen opened heavy in Asia and slipped to Y95.94 before meeting support in the dip from importers, Gotobi day demand extended through the fix to Y96.26. The government increasing its economic assessment for the third month and the upper house voting in favour of three BOJ nominees also attributed to the move. Sharp retail supply pared gains before fresh demand emerged to settle around Y96.10/15. Euro-yen saw a quiet Asian session with trade light, tied to a narrow Y124.82-125.33 range. The cross opened flat in Europe and endured a slow grind lower to Y124.91, before bouncing with euro-dollar on macro demand. Sentiment turned and the rate lifted to Y125.20, fresh demand extended through Y125.50 to print highs of Y125.74. Dollar-yen was dragged higher on the move to Y96.26, before meeting resistance from the Asian high and settling around Y96.15, euro-yen last Y125.60 in late dealings.
EasyForexNews Research Team