Closed in NY at $1.2564, following a lacklustre NY session which had seen rate consolidate mainly between $1.2555/70 (NY range $1.2536/77), after rate had recovered off earlier Asian lows of $1.2466. Rate initially edged to $1.2571 in early Asian dealing on reported CTA demand but this early positive tone quickly faded with rate drifting off to $1.2553. Rate recovered to $1.2561, retested the lows before edging on to $1.2566 ahead of the european open. Rate currently trades around $1.2562. German state CPI releases continue this morning, the national CPI to be released at 1200GMT, same time as the Norges Bank decision (no change widely expected). US Q2 GDP second reading due at 1230GMT and the stand out data release of the day, expectations for an upward revision from 1.5% to 1.7%, though detail to be examined. Germany Merkel meets Italy Monti today, though no schedule given. Offers seen from Tuesday’s high at $1.2577, extending toward $1.2600, with US corporate sell interest (which capped recently at $1.2590) remaining in place, along with suggestion of euro intervention recycling. Bids $1.2510/00.
EasyForexNews Research Team