Closed in NY at $1.22361 having seen extended lows post less than expected dovish FOMC Minutes release of $1.2212, the move lower taking out option barrier interest at $1.2230 and $1.2220, but stronger demand ahead of larger barrier interest at $1.2200 cushioned
the move lower. Rate in Asia initially edged to session highs of $1.22481 before risk got a knock from the surprise 25bp rate cut in S.Korea (prompting Asian growth concerns), along with weak Australian jobs data (though this was rumoured Wednesday). EUR/USD dropped back to $1.22237 before settling back between $1,.2235/45 ahead of the European open. Bids remain in place ahead of the mentioned barrier interest at $1.2200, some suggest this is a digital structure, part of which rolls off today. Stops noted below, a break to open a deeper move toward $1.2170. Offers remain in place to $1.2250 with weak stops noted through $1.2250/60. Next resistance seen into $1.2275 with CTA stops seen clustered above this level. Further offers then noted into $1.2300. EMU IP at 0900GMT and US jobless claims provide data interest.
EasyForexNews Research Team