29 March 2001, 12:20 Europe FX Opening: Summary of overnight moves and what's ahead
London, March 29 (BridgeNews) - The following is a summary of
overnight moves since Europe's close, plus possible leaders for the
session ahead:
EUR CL * US CL * PREV DAY HI-LO * ASIA HI-LO
EUR/USD 0.8880 0.8860 0.8845-0.8946 0.8860-0.8873
USD/CHF 1.7225 1.7275 1.7147-1.7295 1.7248-1.7275
USD/JPY 121.80 122.25 121.44-122.74 122.13-122.60
EUR/JPY 108.20 108.30 107.42-109.34 108.32-108.74
EUR/CHF 1.5300 1.5305 1.5294-1.5349 1.5298-1.5325
EUR/GBP 0.6175 0.6165 0.6161-0.6239 0.6159-0.6174
CABLE 1.4370 1.4365 1.4281-1.4381 1.4360-1.4379
DOW CL 9784 (-162)
NAS CL 1854 (-118)
KEY ISSUES:
* Markets hope for ECB rate cut, but fear disappointment
* Stock markets suffer
* Moody's downgrades Argentine
* BOC's Dodge says low CAD |can be a cause of concern"
--The EUR gave up most of Wednesday afternoon's bounce in late US
trading before recovering marginally, led by EUR/JPY selling on
disappointing Japanese IP data for February. The USD began to pick up
ground as world equity markets started to fall again. Upbeat comments on
an H2 US recovery from Fed's Broaddus and Meyer helped USD sentiment.
Moody's followed S&P's downgrade on Argentina, ading to global woes.
--EUR/JPY came off an early US high of 109.16 to hit the 108.30 area
in early Asian trading, before pushing up to the 108.65 region after
Japanese IP for February came in at a disappointing 0.4% rise on the
month. Analysts had been looking for a 2.0% rise. Volumes were thin as
Japanese players largely stayed away ahead of the March 31 Japanese fiscal
year end and the ECB's interest rate decision.
--USD/JPY was lifted to 122.77 in early US trading on demand from a
hedge fund before trading a 122.15-45 range in Asian trading. The pair was
trapped between Japanese exporter selling and fixing related demand and
inter bank short covering. The Nikkei ended the day down a whopping 693
pts or 5% at 13072. The MOF's Muto is scheduled to speak at 0800 GMT.
--EUR/USD's bounce ran out of steam in early US trading, the pair's
inability to break back above 0.8900 encouraging sellers who took it back
to 0.8850. The pair was led higher by EUR/JPY buying to the 0.8875 area by
the Asian afternoon. Speaking late on Wednesday the Fed's Broaddus said
falling confidence has amplified the US slowdown while the Fed's Meyer
said the US economy has been soft in Q1 and is likely to stay so during
Q2. Bids are reported in the 0.8800-30 area with buy stops around
0.8925-30. The ECB announces its interest rate decision at 1145 GMT, with
only 5 out of 30 analysts in a BridgeNews poll forecasting a cut to the
currently 4.75% refi rate. Italian PPI for February is released at 0700
GMT while Hesse state central bank Governor Reckers speaks at 1600 GMT.
--EUR/GBP pushed off a near 3 1/2 month low around 0.6155 to touch the
0.6175 area as EUR/USD recovered in Asian trading. Cable traded a narrow
range just under Tuesday's 1.4380 high. The RICS survey said a net 32% of
surveyors reported higher UK house prices in February, up from a net
balance of +24 in January.
--AUD/USD was sold from the 0.4945 area to a low of 0.4920 by a
Japanese securities house, before trading within these bounds.
--USD/CAD dropped from a 1-week high around 1.5725 to the 1.5620 area
on profit taking. The BOC's Dodge, speaking after the low had been struck,
said that a low CAD "can be a source of concern."
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