Closed in NY at $1.3138 having recovered off lows at $1.3069 to $1.3152. Rate meandered its way up to overnight session highs of $1.31579 in Asia, driven mainly by cross flow. As this demand faded so rate drifted down to the lows of $1.31289. Rate was recovering late in the session, nudging up against $1.3150 into early Europe. Focus today will be on this morning’s release of Germany PPI at 0600GMT ahead of Ifo data 0800GMT, traders expecting a small decline in all indices. IMF/World Bank meeting begins today and continues into the weekend with the IMF looking to boost its global firewall. Markets overnight have tended to trade with a mild risk off tone though early demand for EUR/USD possibly prompted by positive comment suggesting the IMF will attain the target $400bln funding. Offers seen placed between $1.3160/70 ($1.3166 Thursday high) with stops above, a break to open a move toward $1.3180 ahead of stronger interest between $1.3200/20 with stops above. Support seen back at $1.3110/00, more at $1.3080 with talk of corporate demand remaining in place from $1.3075 through to $1.3040.
EasyForexNews Research Team