Closed in NY Friday at $1.2782, off late extended recovery highs of $1.2795. The corrective pullback continued into early Asia, the rate pressed to a session low of $1.2749 before meeting US name demand. Rate pushed up to an early recovery high of $1.28018, the move prompting talk in Asia that buying was for the Tokyo fix. Once fix was over rate drifted off to $1.2785. Rate bounced back, extending session highs to $1.2813 before meeting stronger opposition. Rate drifted lower again, trading around $1.2785 into early Europe after meeting support ahead of $1.2780. Asian traders noted that macro accounts were seen as buyers, countered by CTA supply. Decent sell interest said to remain in place between $1.2810/15 with stops above. Further offers seen tight behind at $1.2820, more layered toward $1.2850. Support seen placed between $1.2780/70 ahead of $1.2750. Market attention switches from the weekend G8 to Wednesday’s informal EU heads of state dinner. Flash estimates for the Eurozone May PMI’s Thursday, along with Germany Ifo, seen key.
EasyForexNews Research Team