Closed in NY at $1.2365, after a dollar demand end month fixing had taken rate to extended lows of $1.2336. Rate came under pressure into early Asian dealing, the release of weaker than forecast China PMI data giving it the nudge to take it to overnight lows of $1.2324. Rate recovered to $1.2355 before settling between $1.2340/50 ahead of the European open. Traders expect some overhang from month end flows, where dollar demand was to the fore, though this afternoon’s key US Employment Report could act to subdue markets ahead of release. Ahead of this the morning’s focus will be on final Eurozone PMI data, Italy release coming at 0743GMT up to Eurozone at 0758GMT. Support seen from the overnight low at $1.2324, with option linked demand seen dotted down toward the next barrier at $1.2300, with stops noted below. Resistance seen at $1.2355/65 ahead of stronger interest placed above $1.2400. Large offers noted at $1.2440 Thursday remain in place. Market remains on headline watch with particular interest in Spain and Greece, with Ireland referendum results awaited.
EasyForexNews Research Team