Closed in NY at $1.2355, off its recovery highs of $1.2373 after rate had been driven up from session lows of $1.22556. A subdued Asian session saw rate consolidate Thursday’s move within a range of $1.2352/62 before coming under sell pressure into the afternoon with rate pressed down to $1.2339 ahead of the European open, as weak stops below $1.2340 were targeted. Rate currently trades back around $1.2347 as market awaits Europe’s influence. Germany producer prices at 0600GMT ahead of EU current account and trade data at 0800GMT and 0900GMT respectively to provide morning interest, with US Michigan consumer confidence the stand out US release at 1355GMT. NY traders linked Thursday’s euro-dollar recovery to strong macro short covering, with light corporate supply only providing a weak counter. Rate remains headline reactive but underlying bid tone in risk currently seen keeping tone positive. Offers noted at $1.2357/62, a break to expose Thursday’s high at $1.2373 ahead of $1.2386 (Aug 14 high and 50-dma) with the 55-dma also expected to attract offers at $1.2395 and into $1.2400.
EasyForexNews Research Team