Closed in NY Thursday at $1.2393 after rate was pressed to extended lows of $1.23639 after the ECB cut rates by 25bps, the deposit rate cut to 0.0%, as well as ECB Draghi’s negative growth outlook. Rate squeezed lower into early Asia on reported CTA supply, posting a low at $1.2375 before settling around $1.2380 through the balance of another subdued session as attention now turns towards today’s US employment report. Following the high ADP Thursday, along with a better employment component in the non-manufacturing ISM (vs a small fall in the employment component in mfg ISM) seen upping some forecasts above the earlier consensus 100k. Traders note demand into $1.2370 with interest extending through Thursday’s lows to $1.2350 with stops placed on a break below, which if triggered opens a challenge on $1.2325/20. The Jun1 low at $1.2288 then moves into view on a break. Resistance remains on approach to $1.2400, a break to open a move toward $1.2420, with offers from this level seen strengthening toward $1.2450.
EasyForexNews Research Team