Closed in NY at $1.3260 with rate coming under pressure early into the Asian session as wires ran headlines that Greek political leaders had failed to reach a final agreement on the new bailout deal (pension cuts a stumbling point in the required austerity measures). Rate dropped through the NY base at $1.3221, triggering stops that took rate on to an extended pullback low of $1.3215. Leveraged buyers emerged into the dip, the recovery also prompting profit take buying from those that shorted ahead of the reported barrier at $1.3300 Wednesday, with the demand taking the rate through Wednesday’s high of $1.3290 and through the barrier interest at the figure before topping out at $1.3313. Corrective pullbacks have been shallow, holding above $1.3295/90. Trade direction remains headline driven, with Greek debt deal developments the main focus, with today’s ECB rate decision, and Draghi press conference, pushed slightly into the background. No change in rates widely expected, but Draghi comments on any ECB Greek debt deal involvement will be watched for.
EasyForexNews Research Team