EUR – Closed in NY at $1.2853 after rate had been pressed to session lows of $1.2830 before it recovered to $1.2880, then drifted off into the close. Euro came under pressure on the fall out from the Cyprus agreement, the market pegging selling to any piece of negative news with comments from Eurogroup head Dijsselbloem suggesting that the action for Cyprus provides a template for future bail-ins, later denied, providing the last downside push then recovery. Rate touched an early low at $1.2844 in Asia before slowly recovering through the session to a high of $1.2878 into Europe. This move higher was led by euro-yen as the Japanese currency softened on reported comments from new BOJ head Kuroda. Recovery continued into early Europe, the rate initially meeting resistance into the 200-dma at $1.2882 before marking highs at $1.2885. Rate reversed on reported middle east supply, with the release of weaker than forecast French consumer confidence providing the added weight to take rate to extended lows of $1.2839. Rate recovered as the euro picked up demand via the crosses touching $1.2883 before momentum faltered. Fairly subdued markets, comments on Cyprus have quietened down.
GBP – Closed in NY at $1.5176 after rate had been pressed to extended lows of $1.5143, recovered to $1.5196 before drifting off into the close. Moves through Monday’s session were dictated by euro-dollar action though euro-sterling getting pressured to extended lows of stg0.8458 diverted some of the pressure from euro-dollar’s deeper slippage. The cross consolidated Monday’s easing between stg0.8470/80 in Asia allowing cable to track euro-dollar’s slow recovery, the rate edging up from an overnight low of $1.5166 to $1.5198 into the European open. This recovery extended to $1.5207 in early European dealing before rate was dragged lower by another round of euro-dollar slippage with the cross remaining within stg0.8470/80 in early trade. Cable eased to $1.5175 before pressure was relieved as the cross broke down to stg0.8461. Euro recovery saw the cross edge higher, though cable was able to make another show above $1.52, touching $1.5203 before dropping back to $1.5173 as the cross moved through stg0.8480 to stg0.8485. Cable settled back around $1.5180 late morning, the cross back within its overnight range ahead of NY. UK CBI data at 1100GMT the next focus ahead of US durable goods and consumer confidence
JPY – Dollar-yen dipped to Y93.87 in early Asia before turning higher through the Tokyo fix. The move was given an added boost on new BOJ Governor Kuroda comments concerning the extending of maturities of the JGB’s it buys under its asset buying programme from three to five years, as well as suggesting a scrapping of the bank note rule (the bank note rule is the policy where BOJ keeps total JGB purchased under the total amount of bank notes in circulation). Rate edged to a high of Y94.45, with strong asset manager demand noted in the move, but rally faded, though only minor exporter sell interest was reported here. Euro-yen touched a low in Asia at Y120.73, recovered to Y121.56, then settled between Y121.10/40. Dollar-yen opened on a bid tone in early Europe and lifted to Y94.40, the rate stalled and tracked euro-yen lower on reported Middle Eastern supply. Dollar extended losses to Y94.00, before tech support (38.2% of Y124.14-75.35) cushioned allowing recovery efforts to Y94.15, rate extended the slow grind settling around Y94.30 ahead of NY. Euro-yen opened firmer to Y121.64, before falling sharply with euro-dollar to Y120.86, late trade recovered with dollar-yen to Y121.25.
EasyForexNews Research Team