Closed in NY $1.2334, after recovering off a session low of $1.2288 to $1.2347, the rate having seen highs earlier in the day at $1.2382. Rate squeezed down to $1.2327 in opening trade, bouncing to $1.2358 as early market reacted to a weekend press article in Der Spiegel suggesting that the ECB is considering setting limits on yields of euro area sovereign debt by pledging unlimited bond purchases. This early positive tone quickly lost momentum as analysts picked apart the article, the rate easing back to $1.2321 before settling between $1.2328/38 ahead of the European open. Singapore closed, as well as a few Islamic centres in observance of Eid, made for another subdued Monday Asian session. A light calendar for Europe and the US today could continue this tone, though market beginning to focus more on headlines as we approach Aug 31 Jackson Hole and the ECB Sep meeting (Sep 6). Offers remain in place toward $1.2360 ($1.2358 Asia high/$1.2360 76.4% $1.2382-1.2288), a break to open a retest on $1.2382 ($1.2379 50-dma) with offers seen to $1.2400. Support $1.2310/00 ahead of $1.2288.
EasyForexNews Research Team