Closed in NY at $1.2318, off recovery highs at $1.23248 after rate had seen lows earlier in the day of $1.2225. Early demand into Asia saw a US bank target stops above $1.2325 but efforts were thwarted as rate topped out at $1.2322. Fund sales countered the move and pressed rate back toward $1.2300. The Eurogroup statement was viewed as lack lustre with traders noting Asian reserve sales adding weight which took rate below $1.2300 to $1.2282. Chinese announcement of reverse repos acted to boost risk and allowed rate to recover to $1.2295. Offers remain in place to $1.2325 with stops above said to extend to $1,.2340, with stronger sell interest noted into $1.2350. Demand remains between $1.2280/70 with stops below. Next demand noted into $1.2250 ahead of Monday Asia lows at $1.2225. IP data from France, Italy and Netherlands due this morning but headlines remain the driving force as market turns attention to Ecofin.
EasyForexNews Research Team