Closed in NY at $1.2253 after seeing lows in this session of $1.2235. Rate marked an early low of $1.2246 in Asia before a reserve
manager emerged as an early buyer (in cable as well) lifting the rate to an initial high of $1.2255 before fund demand added to the upside pressure that took rate on to a high of $1.2267. Rate drifted off to $1.2250 before edging back to $1.2260 into early European dealing. Recovery tone remains in place into early Europe as rate extends topside to $1.2270. Offers seen at $1.2270/75 ($1.2273 38.2% $1.2334-1.2235), a break to open a move on toward $1.2295/1.2300. Traders report demand in place from the overnight low at $1.2235, extends toward the $1.2225/20 area, with stronger interest noted ahead of the well reported barrier at $1.2200. German final HICP due for release at 0600GMT provides the early interest ahead of US trade data at 1230GMT. FOMC Minutes at 1800GMT to partly overshadow though some suggest that these could prove a little dated following Bernanke’s post meeting press conference and Friday’s jobs data. ECB to release report on international role of the euro.
EasyForexNews Research Team