Closed in NY at $1.3457 after rate had recovered off pullback lows of $1.3389 (lows seen on reaction to Ireland’s call for a referendum on the EU fiscal treaty), the rate pushing to an intraday high of $1.34715 ahead of the close as risk outlook was boosted on the Dow close above 13000 (first time since 2008), as well as the positive outlook for today’s LTRO take up. Rate posted a session low at $1.3455 into early Asian trade before pushing higher on end month EUR/JPY demand into the Tokyo fix. Rate ran into decent offers placed at
$1.3480, with spec longs covering back to take rate to $1.3465. Another push higher extended rate to $1.3486 but traders said to have met heavy offers from above $1.3485 ($1.3487 Feb24 high) which then saw rate settle between $1.3470/85. A late paring back of longs allowed rate to ease back and settle between $1.3465/75 into the European open. Rate retains an underlying buoyant tone into early Europe with attention on reported barrier interest at $1.3500 and large stops above. Offers seen heavy to $1.3500, though larger barriers noted at $1.3525 and $1.3550.
EasyForexNews Research Team