Closed in NY at $1.2180, off lows of $1.21335, following a whippy session driven by ECB Draghi’s press conference which had seen rate spike to $1.2406 on anticipation of announced euro support. However, as had been noted in recent sessions the market had left itself open to disappointment, Draghi comments that the ECB ‘may’ buy bonds was not as strong as the market was wanting. Asia moved into a typical pre NFP market with trade overnight contained within a tight $1.2167-86 range, with overnight positions held by Asian traders, whether short or long, taken out by the market volatility. Outside of last’s range traders noted light offers in place between $1.2215/25 with stronger interest seen into $1.2250, more around $1.2300. Support noted at $1.2167 ahead of $1,2150/45 and $1.2135/25. Downside barrier interest remains lower down at $1.2000, with talk suggesting one inside at $1.2040. Services and composite PMI data due for release this morning will provide the early interest but will be overshadowed by US NFP and any comments from Eurozone officials after yesterday’s press conference.
EasyForexNews Research Team