22 January 2001, 10:57  Europe FX Opening: Summary of overnight moves and what's ahead

By Bridge News London--Jan. 22--The following is a summary of overnight moves since Europe's close, plus possible leaders for the session ahead: KEY ISSUES:
JPY continues to push higher as positions weigh on USD/JPY, EUR/JPY. German Dec Ifo Business Climate Index the early focus for Europe.
European Open: EU pressured, JPY firms The EUR extended Friday's losses in late US/early Asian trading, before bouncing slightly on profit taking. USD/JPY, similarly, pushed to new lows before bouncing, while USD/CHF drifted off Friday's highs. But the week starts with the EUR continuing to look pressured lower against the USD, JPY, with USD/JPY also looking vulnerable to more position led sales.
--USD/JPY hit a 12-day low of 116.25 in early Asian trading after stops were taken out below 116.95, though pulled back to the 117.10 region during the Asian morning. Selling from Japanese corporates around the high then sent the pair back to 116.50. Dealers report further interest to sell at these higher levels. Following contradictory statements on JPY weakness from the BOJ's Hayami and Finance Minister Miyazawa, the MOF's Mizoguchi said the MOF and BOJ have basically the same FX stance. Japan's state minister for economic and fiscal policy Nukaga, currently caught up in a scandal surrounding KSD, said he would continue in his post, though the whole affair could help dampen enthusiasm for JPY gains. The BOJ's monthly report said the improvement in household income is likely to remain slow for a while. The index of activity for Japan's service industries rose by 0.6% m/m in December.
--EUR/JPY was pulled to an 18-day low of 108.55 as USD/JPY fell, though pulled back to the 109.65 region during the morning. US investment banks were seen selling the cross.
--EUR/USD hit a 5-day low of 0.9330 in early trading before pulling back to the 0.9370 region. Monday sees the release of the German December Ifo business climate index at 0900 GMT plus the possible release of the ICON consumer confidence index for December. Ifo is seen declining to 96.6 from 97.0 In Nov.
Given the EUR is just below the middle of its 0.9288-0.9504 recent range, Ifo could set the tone for the day.
--USD/CHF drifted off a late US high of 1.6392 to hit 1.6318 late in the Asian session. US leading indicators for December are released at 1500 GMT.
--EUR/GBP drifted from an early US low around 0.6360 to touch 0.6395 in late Asian trading. Cable hit a near 1-month low around 1.4625 in late US trading in thin conditions. The pair had bounced to the 1.4665 area by the Asian afternoon. The UK ITEM club said a big fiscal and rates easing is needed to support the UK economy (story .10904).

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