Euro-dollar closed in NY at $1.3147 after rate had recovered off lows of $1.3096 to retest earlier highs at $1.3164. Rate initially dipped to $1.31353 as it took direction from the negative react in the Aussie to release of poor jobs data. Strong demand interest at $1.3130 prompted some front running buys which helped cushion with recovery able to push through Wednesday’s high on reported real money and leveraged demand. The move aided by rumours of a possible China RRR cut (which spiked Aussie above $1.0600). The recovery touched a high of $1.31833 before offers placed to $1.3190 countered, with rate drifting back to $1.3164 ahead of the European open. Rate recovered into Europe but met decent supply from an Asian sovereign above $1.3180 which kept it at bay for a while, but optimism over the Greek PSI take up (result to be announced Friday 0600GMT) provided the demand to spike rate above $1.3200 and on to $1.3228. Rate retained an underlying buoyant tone ahead of the NY open, holding above $1.3200, but off highs. ECB rate decision in focus.
EasyForexNews Research Team