EUR – Closed in NY at $1.2934 after rate recovered through the NY session to a high of $1.2979 before drifting off into the close. Rate touched a low of $1.2929 in early Asia before buyers emerged to edge it to a session high of $1.2955, the move aided by Tokyo euro-yen demand, before it settled around $1.2945 into the European open. Rate touched $1.2950 into European trade before turning lower, making a probe under the Asian base at $1.2929 before jumping back up to retest the $1.2950 level ahead of the French flash PMI data release. Weak numbers dropped rate back to challenge the $1.2920 support area, with German data also weak taking it down through $1.2900 and on to $1.2885. Traders noted that corporates were willing buyers into the dip and helped to cushion the negative react to weak Eurozone PMI data. the rate touching an extended low of $1.2980 before spec shorts began to cover back. Rate pushed on to $1.2918 before settling around $1.2900 ahead of the US open. Underlying tone remains heavy though market wary of Cyprus headline risk. A break and close below the $1.2880/75 area to add to this bearish outlook. US weekly jobless claims, US PMI, Phila.Fed and housing data to provide afternoon interest.
GBP – Closed in NY Wednesday at $1.5100 after rate had experienced some big swings through the European and NY sessions. Rate had been pressed to lows of $1.5027 ahead of BOE Minutes only to spike back to $1.5159 as detail was seen hawkish. Rate then dropped to $1.5042 on the opening Budget comments but quickly recovered to $1.5186 as Osborne too was seen supportive, the rate then drifting off into the close. The corrective pullback extended to $1.5090 in early Asia before it tracked euro-dollar’s recovery to $1.5129, settling between $1.5110/20 into Europe. Euro-sterling was contained between stg0.8560/70, the rate having been whipped between stg0.8505-0.8602 Wednesday. Cable picked up a bid tone into early Europe, the rate edging to $1.5149, the move aided by euro-sterling tracking euro-dollar slippage as it eased toward support at stg0.8540. Cable eased to the $1.5120 area before it picked up fresh demand interest, the rate breaking to $1.5260 as traders positioned for UK retail sales data. Strong data spiked cable to $1.5205, as euro-sterling was pressed to stg0.84925. Decent supply above $1.5200 took cable back to $1.5163 but strong demand again emerged to edge rate to $1.5180/85 late morning.
JPY – Dollar-yen opened on a bid tone in Asia and lifted to an early high of Y96.11 after Japanese press speculated that Kuroda would make a stance for bold easing in his press conference. The rate later pared gains on profit take sales, Japanese exporter supply added weight flushing light stops to Y95.67. Euro-yen saw a similar move, the rate touched a high at Y124.38 before drifting off to Y123.76. Risk appetite lifted the yen pairs to Y124.21 and Y95.95 in early Europe, before drifting lower. Release of soft French flash PMI data turned sentiment, weaker than expected German, followed by eurozone PMI data pressed to Y123.25. A fresh wave of supply which left traders scratching their heads extended losses to Y122.86, before demand in the dip from reserve names provided a cushion, later bouncing to Y123.15. Dollar-yen tracked the move, printing lows of Y95.20, before recovering to Y95.45 and settle in a tight range. The Kuroda press conference was underway at 0900GMT but behind closed doors, at typing there were no headlines announced.
EasyForexNews Research Team