Closed in NY at $1.2945, after recovering off session lows of $1.2898 to $1.2955. Rate marked Asian session highs at $1.2946 in early trade before turning lower, the move down to session lows of $1.2911 given an added shove as PBOC fixed CNY at 6.3115, up sharply from Tuesday’s 6.3001. Rate edged back to $1.2930 before drifting lower again ahead of the European open, with early Europe seen pressuring reported CTA stops sub $1.2910, though reports emerge of large demand seen on the platforms between $1.2905/04. One trader at a major bank in their early report notes that real money has been a stand out buyer into the recent move lower and suggests that it could forewarn of a possible sharp bounce back. However, main focus this morning will be on the French E8bln long dated bond auction, with German retail sales and French consumer confidence due out ahead. Apart from stops sub $1.2910 and demand at $1.2905/04 further bids $1.2900, more toward $1.2880 with stops below. Further demand into $1.2860 with system stops below though any trigger to meet option linked demand ahead of a $1.2850 barrier.
EasyForexNews Research Team