Closed in NY at $1.3048, off pullback lows of $1.3025 seen after the downgrading of Hungary to junk status by S&P. Rate had seen highs Wednesday of $1.3199 post the LTRO 3-year funding by the ECB, the initial react to the high take up quickly reversing as market suggested that funds may not be all used to buy EUROZONE sovereign debt. Trade in Asia consolidated Wednesday’s reversal within a range of $1.30334/1.3052. Reports of decent sized sell interest around $1.3050 had kept rate pinned down through the overnight session. However, this sell interest was filled into early Europe, with follow through buying taking the rate on to $1.3070 (76.4% $1.3083/33). Rate currently trades around $1.3064. A break and clear above $1.3070 to open a move back toward $1.3080/90 ahead of $1.3115/20. Support remains in place between $1.3035/25 with Asian traders noting talk of a large $1.3000 strike option to roll off at the NY cut which may act to attract. Markets remain thin and open to volatile moves on headline and order driven trade. Traders suggest range trading within $1.3000/1.3150.
EasyForexNews Research Team