Closed in NY Friday at 1 4475 with rate coming under early downside pressure into Asia

Closed in NY Friday at $1.4475, with rate coming under early downside pressure into Asia as the dollar pared back some of Friday’s losses as market reacted to the stop gap deal in the US to prevent a government shutdown. Rate met support around $1.4450 before bouncing back, the move up led by euro-yen demand as this rate broke above Y123.00 to Y123.33. Euro-dollar rallied to a high of $1.4485, just shy of Friday’s NY high of $1.4489, with option linked offers placed ahead of the next barrier at $1.4500 able to counter. Reversal in euro-yen saw euro-dollar correct lower, posting lows at $1.44414 before settling around $1.4450 into early Europe. Asian central bank interventions noted overnight and expected to provide euro-dollar demand into Europe on reserve balancing.

Rate bounced to a session high of $1.6392 on cross yen led trade, reversing back as it continued to track cross yen, sterling-yen correcting back from highs of Y139.50 to Y138.55, easing to a session low of $1.6350. Cable slowly recovered, edging back to $1.6380 before squeezing back to retest lows ahead of the European open. Euro-sterling, which had been a significant driver for the pound into late last week, was contained within a tight stg0.88275/375 range. UK inflation data Tuesday seen as key. Cable support remains at $1.6350, a break to allow for a deeper move toward $1.6325/20 ahead of $1.6300. Resistance noted between $1.6390/00, a break to expose Friday’s high at $1.6430. Above here and stronger offers noted between $1.6450/60.

Opened in Asia at $1.0565 and remains firm despite the weekend aversion of a US government shutdown, edging up to $1.0576 as early cross buying tripped an aussie-yen barrier at Y90.00, but then slipped back on strong profit taking in aussie-yen, to a low of $1.0539, before moving higher again. Strong Chinese data, gold prices and M&A talk of BHP buying part of Shell’s Woodside Energy has helped to keep the pair buoyed. Bids are seen at $1.0535/40 with more at $1.0500, and option related offers are layered ahead of Friday’s high of $1.0583 and a barrier at $1.0600. Above here lie further offers $1.0620/30.