Closed in NY at $1.3109 after recovering off a late pullback low of $1.3094. Rate extended its recovery, aided by early EUR/JPY demand into Asia, with dovish comments from Fed Yellen (a known dove but some had positioned for a possible slight change in stance) providing the early lift to $1.3125. Rate dipped back to $1.3105 before picking up stronger demand interest prompted by the release of much stronger than expected Australian jobs data. UK clearer buys took rate through reported offers at $1.3130 and on to $1.3137. Rate was holding firm into early Europe. Sell interest is reported in place to $1.3150 and should make upside progress sticky, while another notes offers through to $1.3165, with decent sized stops residing above $1.3170. Support $1.3100/1.3090 with stops below, a break to open a deeper move toward $1.3065/50. France CPI at 0530GMT and EMU IP at 0900GMT the morning’s data interest. Eurozone peripheral bond performance remains a directional key, with bond yields in general the main focus. US trade and PPI at 1230GMT withy more Fed speak on the calendar.
EasyForexNews Research Team