Closed in NY at $1.3185, off a late rally high of $1.3213 seen as market reacted to rumours (unfounded as the later release showed) of a strong China GDP. Rate got another lift into early Asia as the rumour mill continued on the expectation of a strong China GDP, the rate trading to a high of $1.3201 into the release. The 8.1% reading came in below forecasts of 8.4%, and well below the overinflated rumours for 9.0%, which reversed the early risk on moves and saw rate pressured to lows of $1.3166. Recovery efforts were contained below $1.3180 before rate settled around $1.3170 through to the European open. Rate currently trades around $1.3168. Rate has enjoyed decent underlying demand through the week, asset re-allocation cited, countering Eurozone peripheral bond concerns and keeping the rate well supported above $1.3100. Asian traders note there is strong demand remaining in place below current market at $1.3115/00. German CPI at 0600GMT this morning’s interest ahead of US CPI at 1230GMT, UofM at 1355GMT. Bids seen between $1.3160/40 ahead of $1.3115/00. Resistance $1.3200, $1.3210/20.
EasyForexNews Research Team