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 back 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 bids which helped cushion the early dip with recovery able to push through Wednesday’s recovery high at $1.3164 on reported real money and leveraged demand, the move aided by rumours out of mainland China of a possible RRR cut (which spiked Aussie above $1.0600 from lows of $1.0531). The recovery touched a high of $1.31833 before reported offers placed to $1.3190 countered, with rate drifting back to $1.3165 ahead of the european open. Rate currently trades around $1.3170. Main focus remains of Greek PSI participation, though definite results of this will only be had after the closing deadline of 2000GMT though market will be on look out for intraday comments relating. This event overshadows ECB rate decision, no change expected and main interest will be on Draghi comments.
EasyForexNews Research Team