Closed in NY at $1.2321, just off lows of $1.2317 seen after the dollar got a general boost on the back of better than expected US retail sales data. Rate squeezed down to retest the NY low into early Asia, again basing at $1.2317 before picking up demand into Tokyo trade. A mix of EUR/AUD demand and EUR/JPY positioning for expected demand to be seen into the Tokyo fix (Goto-bi day) saw rate push up to $1.2332, but being Obon week a lot of corporate interest was missing with minimal fix demand weighing back on EUR/JPY and in turn EUR/USD. Rate settled between $1.2320/30 for the balance of the session, trading around $1.2325 ahead of the European open. Bids remain in place at the $1.2317 level, a break to expose reported Swiss demand at $1.2310. Stops are reported from $1.2310 through to the figure. Further demand noted between $1.2280/70 with stops below, but if triggered to meet stronger demand placed below $1.2265. A light Eurozone calendar today with data interest to be provided by US inflation numbers and Empire mfg survey at
1230GMT. Market again open to headline driven reactions.
EasyForexNews Research Team