Closed in NY at $1.2470 after recovering from pullback lows of $1.2457 having seen extended highs earlier in the session of $1.2488 on continued euro short covering. The negative close on Wall Street is seen souring the recent risk on tone, countering continued euro recovery with euro-dollar consolidating through a subdued Asian session between $1.2459/78. Euro-Aussie demand for ongoing unwinds has provided the main support overnight. Rate currently trades around $1.2465 into early Europe. A light data calendar with main attention through the day to be focused on tonight’s FOMC Minutes release 1800GMT. Traders at RBC suggest that discussions of the costs and benefits of further policy measures will be important, noting that Fed Williams seems to have shifted in favour of more QE since this meeting. With a light data calendar in Europe headlines will again be an active driver of trade, Greece PM today meeting Eurogroup chief Juncker today. Offers remain in place from $1.2488 through to barrier interest at $1.2500 ($1.2000-1.2500dnt structure). Bids $1.2460/40 with system stops below.
EasyForexNews Research Team