EUR – Closed in NY Thursday at $1.3102 after rate had pulled back following a second rejection from the $1.3138 level, the rate making a brief show under $1.3100 to $1.3096 before edging back into the close. Recovery off that late pullback continued at a slow, steady pace through Asia, the rate touching a high of $1.3126, despite reported euro-yen sales through the session (this cross having been a key directional driver in recent sessions), as the dollar was seen under general pressure, prompted by dollar-yen breaking back under Y99.50. The recovery stalled, with rate dropping back to $1.3109 but buyers quickly emerged into the dip to edge rate back toward $1.3120 ahead of the European open. Euro-yen sales continued into Euro, which in turn weighed on euro-dollar with this pair breaking under the Asian base at $1.3100, extending lows to $1.3040 late morning as traders reacted to reported comments that Cyprus would ask for an increase in financial aid. Strong demand into that $1.3040 low had been widely reported and has provided a base so far ahead of the NY open. Stops are reported on a break. Friday position adjustments in the weekend cited for the correction.
GBP – Closed in NY Thursday at $1.5384 after rate had pulled away from extended recovery highs of $1.5412. Rate touched an overnight low at $1.5383 in opening Asian business before rate began again to edge higher, the move to $1.5410 driven by general pressure on the dollar, prompted by dollar-yen’s break back below Y99.50 following failure to break Y100.00. A bounce in dollar-yen dropped cable back to $1.5390 but buyers were quick to emerge, the rate recovering toward $1.5400 ahead of the European open. Euro-sterling was contained in Asia within a range of stg0.8512/20 leaving cable to take direction from euro-dollar plays. Strong euro-yen sales in Europe weighed on euro-dollar, but cable, though slowly dragged lower, gained some buoyancy as euro-sterling broke under stg0.8500, extending lows to stg0.84945. However, cross demand here then allowed cable to extend lows to $1.5343 but reported demand to $1.5340 cushioned. Friday position adjustments ahead of the weekend to continue to dictate direction, with US retail sales, PPI and UofM providing data interest along with US bank earnings reports.
JPY – Closed in NY at Y99.68 after a late rally faltered ahead of the Y100.00 at Y99.95. Dollar edged to Y99.81 in early Asia before Tokyo emerged, the supply pressed the rate down to eventually break under Y99.50, move triggered stops of weaker spec longs positioned for a break of Y100.00 into Asia. Rate saw an eventual low of Y99.36, later recovering to Y99.50. Euro-yen saw extended highs of Y131.12 Thursday before drifting lower, the corrective pullback gaining momentum in Asia to take it to Y130.31. Dollar-yen opened flat in Europe before grinding lower with the cross on euro-dollar’s break of $1.3100. Rate slipped to Y99.30, before Middle-Eastern demand provided a cushion. Second wave sales from model names added further weight, German bank supply pushed through Y99.00 and as euro longs were squeezed ahead of the w/e stops were flushed on the move to Y98.87. Euro-yen opened heavy and tracked euro-dollar moves through Y129.50, before finding support in the dip ahead of Y129.00. Profit take demand bounced, before extending recoveries to Y99.10/Y129.30.
EasyForexNews Research Team