Closed in NY at $1.3217, the rate correcting away from a late recovery high of $1.3240, with news of S&P’s downgrading of Spain by two notches to BBB+ hitting the markets at 1700EDT dropping the rate down to opening Asian session lows of $1.31766 in very thin trading conditions. Rate recovered, settling within a range of $1.3190/1.3210, easing down to $1.3185/95 after the BOJ announcement. Rate trades around $1.3185 into early Europe. Bids reported between $1.3175/70, more between $1.3160/50. Resistance seen at $1.3210, a break to open a move toward $1.3230 ahead of $1.3245/55 with Thursday’s high at $1.32635 lurking behind. Focus on the day will be on US GDP data at 1230GMT. Traders expect the overnight S&P downgrading of Spain to dent euro’s recent risk-on lift but add that underlying demand remains to restrict pullbacks.
EasyForexNews Research Team