Closed in NY at $1.2402 following a fairly subdued session with trade in the US contained within a relatively tight range of $1.2374-1.24298. Rate slipped into early Asian dealing, squeezed down to $1.2385 but failed to trigger reported decent sized stops placed on a break below. Recovery to $1.2407 was driven by decent demand from a UK merchant bank, but upside momentum quickly faded on order exhaustion. Rate then settled around $1.2400 ahead of the European open, squeezing toward $1.2390 in early trade as rate tracked Aussie’s corrective pullback after it eased from its brief sojourn above $1.0600. Market seen waiting for developments concerning Spain and Italy, though no signs as yet that either country is close to asking for debt aid. Germany factory orders at 1000GMT this morning’s data interest with another light calendar in the US. Bids remain to $1.2385 with stops below. Further demand at $1.2370 with more stops on a break though to run into bids at $1.2360/50. Offers $1.2410 through to $1.2470, with barrier interest remaining in place at $1.2450 and larger at $1.2500.
EasyForexNews Research Team