Closed in NY Tuesday at $1.2495 after recovering from a session low $1.2442, pressured on comments suggesting German Chancellor
Merkel had ruled out joint euro bond issuance for the foreseeable future. The tension wasn’t helped by a downgrade of Germany’s rating by Egan Jones, citing increased liabilities. The pair ground lower in early Asian trade to $1.2480 before lifting through $1.2500 to session highs of $1.2505 on Asian reserve manager demand. Dealers again reported of light volumes with trade stuck in a tight 30 pip range ahead of the EU leaders summit at the end of the week. Support seen into $1.2480, with bids scattered through to $1.2440 and stops on a break. Reported offers at $1.2520, a break opens technical resistance at $1.2522/32 from the 5 & 21 day moving averages. Light data calendar today with US durable goods the highlight at 1230GMT. Markets remain open to headline reaction.
EasyForexNews Research Team