Closed in NY at $1.3140 after recovering from session lows of $1.31072. Rate eased back to mark early lows in Asia at $1.3136 before resuming its recovery. Offers placed to $1.3150 again provided resistance, as they had done in late NY, but fresh demand emerged to trigger weak stops above this level with rate eventually able to claw its way up to overnight highs of $1.3158 on reported Chinese market demand (China returning after a 3-day break). Rate settled between $1.3145/55 ahead of the European open but underlying tone remains buoyant. Offers seen into the NY high of $1.3160, a break to open a move on toward $1.3180 with reports of better sell interest placed from here and extending toward $1.3200. Strong option defence demand was encountered Wednesday ahead of a reported barrier at $1.3100, with Asian names the stand out buyers as rate bounced off $1.3107. Bids seen placed between $1.3135/25, a break to expose that $1.3100 area. Germany IP at 1000GMT ahead of US weekly claims data at 1230GMT today’s data interest. Position adjustments expected to dominate ahead of Easter/NFP.
EasyForexNews Research Team