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Forex: New York Euro and Yen Summary

Posted by Joseph Trevisani on Oct 18, 2013 4:07:00 PM


The euro opened in New York at 1.3681 (8:00 am) after twice stopping just short of the 2013 high of 1.3711 (February 1st) in Europe. Each time the united currency reached 1.3704. After the first attempt the euro dropped back to 1.3693, after the second, about half an hour later, it almost immediately fell to back to 1.3585 crossing the New York open on its way to the session low at 1.3669.

The brief period spent over 1.3700 makes it likely that the full volume of selling in front of the 1.3711 high was not executed. That seemed to be true when, leading up to the 11:00 am London fix (4:00 pm local time),  traders took another turn at the top, but this time the run stopped at 1.3700 and sell orders drove it to 1.3577 before finding a bottom mid-way in the afternoon.

 Chicago Fed President Charles Evans said that it would be a "poor choice' to raise rates to discourage risk-taking when the economy needs support from low rates, but by that time market interest had faded and the report brought no movement, closing at 1.3687.

The delayed U.S. Employment Situation Report including non-farm payrolls will be released Tuesday at 8:30 am. It is the first major statistic issued after the re-opening of the government.


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Chart: Bloomberg

ScreenHunter 1933 Oct. 18 18.09 resized 600


Dollar/yen began New York at 97.77 and euro/yen at 133.75, after stops in late European trading at 97.75 pushed the dollar down to the day's low at 97.56 about 90 minutes before the  American open.

A quick rebound had brought the pair back to 97.87 and it was sliding back just before the 8:00 am open. For  the bulk of the session dollar/yen traded in a narrow 97.67-97.85 range , with more buying interest on dips than selling interest on gains. 

Euro/yen had wider limits of 133.62-133.93, and was generally supported by the strong tone in the euro.  In the early afternoon the cross struck 134.04 largely unaided by a concurrent gain in the euro but helped by an identically timed dollar/yen top at 97.92.

After reaching 97.92 the pair moved sideways through the remained of the afternoon between 97.90 and 97.80. A brief drop at the close brought it to 97.72.The cross closed at 133.79.

As in the euro Fed comments had no effect and with any prospect for a reduction in quantitative easing moving off into the New Year markets will again be focused on U.S data which starts on Tuesday with the delayed non-farm payrolls and unemployment rate.

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Chart: Bloomberg

ScreenHunter 1934 Oct. 18 18.35

ScreenHunter 1936 Oct. 18 18.36


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