Closed in NY Friday at $1.3220, off session highs of $1.3229, with rate marked down to $1.3180 into the Asia open as traders reacted to weekend events, namely the French election (first round won by Socialist Hollande, but Le Pen’s stronger than expected showing causing some concern) and the Dutch PM looking to salvage his austerity budget amid political chaos and seen putting the Netherland’s AAA rating in jeopardy. Rate pressed to lows of $1.3177 in early trade before picking up fresh demand interest, the rate edging to an eventual high of $1.3211 before settling back between $1.3180/1.3200 through to the European open. Traders note that the $1.3200 level holds the strike of an expiring option and could act to keep rate in close touch until the run off. France, Germany and Eurozone flash PMI’s are due this morning from 0558GMT and are the stand out data releases for today. Offers seen placed between $1.3225/30, with further interest seen dotted up to $1.3250. Support remains at $1.3177 (Asia and NY low) a break of $1.3170 to open a deeper move toward $1.3150 ahead of $1.3120/20.
EasyForexNews Research Team