Closed in NY at $1.2529 after rate had been driven to extended recovery highs of $1.2539, from earlier session lows of $1.2431, following the release of dovish FOMC Minutes. Market reacted to the change in statement that many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming data improved (July Minutes had referred to ‘a few members’). Rate marked lows into early Asia at $1.2524 before getting pressured higher again, two European banks noted buyers as rate triggered stops above $1.2540, though this added momentum was not enough to trigger the barrier at $1.2550 on this first attempt. Rate eased off to $1.2525 on reported US model and North Asian sovereign supply, but picked up fresh demand into the dip. Aussie stops through $1.0520 were triggered and took euro-dollar back above $1.2530, with a US black box fund then provided the lift to take out $1.2550, hitting highs at $1.2553 before profit take sales countered. Weaker than forecast HSBC China PMI bruised risk and eased rate to $1.2534 before fresh buyers again emerged.
EasyForexNews Research Team