Closed in NY at $1.2260, after recovering off a session low of $1.2225 to $1.2264 before settling between $1.2250/60 through the NY afternoon. CTA sales of EUR/JPY into early Asia squeezed rate down to session lows of $1.2251 before meeting demand placed on the approach to $1.2250 before recovering to $1.2260. The bounce in the Nikkei prompted US name buys that took rate through $1.2270, the move triggering stops with Swiss name buys then extending the move through $1.2280 to $1.22895, aided by Japanese investor buys of EUR/JPY. Rate held firm ahead of the European open, buoyed above $1.2280. German retail sales greet the early European market at 0600GMT though this week’s ECB policy decision will overshadow, currently seen providing for an underlying positive tone as markets await some positive action following last week’s euro support comments from ECB Draghi. Wednesday’s FOMC decision also anticipated to provide some dovish tones, possibly pushing out the zero rate horizon to mid-2015. Offers dotted to $1.2300 with stops noted on a break of $1.2305. Support $1.2225/20 with stops below.
EasyForexNews Research Team