Closed in NY at $1.2496, after NY extended the rate’s recovery to $1.2510. Rate initially marked overnight session lows at $1.2491 before fresh demand emerged which triggered stops above $1.2510, the added momentum taking the rate to an early high of $1.25275. A second wave of buying was seen prompted as market became aware of stops above $1.2550, but layered offers placed above $1.2540 thwarted these efforts at $1.25429. Rate eased lower before meeting initial support around $1.2520 then slipping to $1.2513 into Europe. Euro short covering seen prompted by hopes for a positive outcome to an announced emergency conference call between central bankers and G7 finance ministers set for the NY morning. A mix of no news is good news for the euro, as well as a sniff of buy the rumour, seen supporting this current recovery, though macro accounts may be trimming back they still suggest that risk-off hasn’t bottomed out as yet. Offers remain between $1.2540/50 with stops above, bids $1.2500/1.2490. EMU services PMI, EMU IP and German factory orders the morning’s interest. ECB and Bernanke Thursday remain key.
EasyForexNews Research Team