EUR/USD is little changed ahead of the Wall Street close after paring an earlier gain. The pair topped out at $1.0686 in Asia overnight versus Friday’s close at $1.0589 as the US Dollar began the week on the defensive, with the Dollar Index edging away from the fresh 13-year high set on Thursday. However, the US Dollar saw a resurgence in afternoon trade, pulling EUR/USD back below $1.06 to a daily low of $1.0564. Comments from ECB Mario Draghi may also have weighed on the Euro after he said the Governing Council will assess next month the various options to preserve the very substantial degree of accommodation to return inflation to target. From a technical view, Friday’s low at $1.0539 may offer some support ahead of the 1-month low set Thursday at $1.0518. On the upside, the overnight high at $1.0686 and the November 17th high at $1.0746 are in focus.
After making modest gains in Asia overnight, GBP/USD fell sharply during the European morning session and has held lower this afternoon amid renewed Dollar demand and cross-driven weakness. The pair reached a daily high of $1.2532 overnight but fell sharply amid strong buying of EUR/GBP on month-end flows, reaching a low of $1.2386. Beyond today’s low, we look for support at last Wednesday’s low of $1.2361 followed by the November 18th low at $1.2302. On the upside, we may find resistance at the overnight high of $1.2532 followed by the November 14th high at $1.2618.
After falling sharply in Asia overnight, USD/JPY has seen a modest recovery during the European/US trading session as the Dollar reclaimed lost ground across the board. The pair reached a low of ¥111.36 overnight but reclaimed the ¥112 handle this afternoon as rising oil prices boosted risk sentiment. From a technical view, the overnight low may offer some support ahead of Wednesday’s low at ¥110.86. On the upside, Friday’s high at ¥113.90 and the March 2nd high at ¥114.56 are in focus.
After falling in Asia overnight, GBP/EUR extended the daily low to €1.1673 during the European morning session amid chatter of month-end flows. The pair did recover slightly this afternoon as risk sentiment saw a modest improvement on higher oil prices and has held on to the €1.17 handle. From a technical view, the earlier low at €1.1673 may offer some support ahead of last Wednesday’s low at €1.1635. On the upside, last Thursday’s high at €1.1820 and the September 13th high at €1.1878 are in focus.