Forex Market
JPY Analysis
USD pair had seen strong buys ahead of the US session but stalled shy of Y81.80 as talk of sizeable offers ahead of Y82.00 trumped other chatter of hefty stops in the same zone while EUR/JPY tested, but respected, Y108.00.
Behavioral Finance: Daily Forex Outlook: The tendency to bearishness is unjustified
EUR USD (1.3145) Narrow ranges and sideways trading currently seem to accompany a popular search for gloomy news. For instance, the Spanish bond auction yesterday proceeded as well as anyone could have hoped at the start of the week.
JPY Analysis
Opened in Asia at Y81.60 and headed higher in early trading this morning on local cross demand in AUD/JPY and EUR/JPY to highs of Y78.71, before running into a raft of offers and easing back to Y81.55. EUR/JPY was tightly rangebound through Y107.15-40 as was GBP/JPY through Y130.89-Y131.21.
EUR Analysis
Euro closed in NY at $1.3138 having recovered off lows at $1.3069 to $1.3152. Rate meandered its way up to overnight session highs of $1.31579 in early Asia, driven mainly by cross flow. As this demand faded so rate drifted down to the lows of $1.31289.
GBP Analysis
GBP closed in NY at $1.6054, having recovered from a pullback low of $1.6009 in early NY (off earlier European highs of $1.6078) to $1.6072. Rate picked up an early bid tone into Asia on the back of GBP/JPY demand, the rate edging to an overnight high of $1.6062 before drifting off to $1.6039 as […]
GBP/USD Analysis
Closed in NY at $1.6054, having recovered from a pullback low of $1.6009 in early NY (off earlier European highs of $1.6078) to $1.6072. Rate picked up an early bid tone into Asia on the back of GBP/JPY demand, the rate edging to an overnight high of $1.6062 before drifting off to $1.6039 as the […]
EUR/USD Analysis
Closed in NY at $1.3138 having recovered off lows at $1.3069 to $1.3152. Rate meandered its way up to overnight session highs of $1.31579 in Asia, driven mainly by cross flow. As this demand faded so rate drifted down to the lows of $1.31289.
Technical Analysis
NZD lower, Italy a must watch, EUR/USD Short term directionless… NZD/USD Ended below the bear flag… EUR/SEK Still bids at the 55d ma low… USD/SEK Something’s soon to break… EUR/NOK Bottoming out process… USD/JPY Taking a shot at resistance.
AUD/USD Analysis
Opened in Asia at $1.0331 after trading a $1.0313-51 range in NY and was helped higher this morning by some early Japanese buying of AUD/JPY which pulled the pair up to $1.0345, before easing back on EUR/AUD demand.
High AUD takes its toll on Oz terms of trade
The end of the week and currencies barely changed from the kick-off on Monday was enough of an incentive for Asia to kick its heels today. Data releases were minor and currencies stuck to tight ranges.
USD/JPY Analysis
Opened in Asia at Y81.60 after trading a Y81.40-73 range in NY and headed up in early trading this morning on local cross demand in AUD/JPY and EUR/JPY to highs of Y81.71 running into a raft of offers and easing back to Y81.55.
EUR Analysis
Euro had lurched under $1.3100 as rumor of a French ratings downgrade provided fuel to flush stop-loss sell orders under $1.3100 but slide was arrested by option-related demand that emerged around $1.3070 and as market dismissed the rumor, euro recovering easily to $1.3100 on short-covering.