Previous session overview

The euro fell against the dollar and the yen in Asia Tuesday as speculators took profits before a key U.S.-Greece meeting later in the global day, while weak U.K. housing data sent sterling broadly lower.

Profit-taking by Asian investors and U.S. hedge funds pushed the euro down by three-quarters of a yen from New York late Monday to JPY122.33 during Tokyo hours, traders said.

The sellers took profit on the euro's gain overnight as caution set in before planned meetings between Greek Prime Minister George Papandreou and U.S. President Barack Obama and Treasury Secretary Timothy Geithner, dealers said.

The dollar fell to JPY89.87 from JPY90.26 in New York on selling by Japanese exporters, traders said.

The Euro tested USD1.3700 in Asia after weekend reports from French President Sarkozy that Greece would be given financial support if it needed it. The pair was weak for the rest of the day as profit taking set in and support at USD1.3620 was tested.

The Pound fell to an intraday low of USD1.4995 compared with USD1.5063 in New York, while it also slid versus the euro and the yen. The pound suffered from data released in Asian time by the Royal Institution of Chartered Surveyors showing that in February, the proportion of surveyors reporting a rise in U.K. house prices exceeded the proportion reporting a fall by 17 percentage points. That was the lowest level since the plus 9.4 reading in August 2009, and sharply missed the plus 32 forecast by economists.

The Australian dollar was lower in Asia Tuesday on weakness in gold and the euro in the offshore session, but the local unit found some strength on a surge in business confidence and a private employment index which underscored the health of the country's job market.

Market expectation

EURUSD edges back to USD1.3620, after earlier Europe squeezed rate under USD1.3600 to challenge tech support at USD1.3597 (61.8% USD1.3530/1.3705). Offers at USD1.3620/25 currently under pressure, a break to open a move back toward the Asian highs at USD1.3636 (USD1.3638 38.2% USD1.3705/1.3597). Bids now seen placed at USD1.3590, stops on a break of USD1.3580.

Pound recovery extends to USD1.5000, but rate seen running into resistance around this level. A break may open a move toward USD1.5030. Support remains at USD1.4975/70, stronger at USD1.4960 with one trader highlighting the USD1.4950 level as key support.

USDJPY some interesting flow going through in dollar-yen this morning, talk of a large Japanese bank selling over 200 million dollars for exporters without much impact whilst traders report some model buying. There is also talk of some decent size expiries in dollar-yen today at JPY90.00, the market is currently JPY90.03.

European stocks are expected to open flat, with lackluster trading on Wall Street and in Asia offering little direction, while the euro has continued to fall ahead of a key meeting between the U.S. and Greece, due to take place Tuesday.

Disclaimer: the data made available by Dukascopy (Suisse) SAis for informational purposes only. Publication of this data by Dukascopy (Suisse) SA does not constitute provision of investment advice and Dukascopy (Suisse) SA assumes no responsibility with regard toany information, forecast or recommendation herein contained and assumes no responsibility with regard toany losses resulting from any activities conducted the basis of this data, including any investment decisions.

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