Closed in NY at $1.2506 after rate had eased away from intraday highs between $1.2560/64 to $1.2487, the move seemingly triggered by reported comments from Slovak PM Fico that a Eurozone break-up is equally possible as the alternative. Rate initially eased to $1.2502 in early Asia before picking demand interest, the rate edging to $1.2521 where it met resistance , the overall tone of trade through the overnight session described as subdued with market awaiting Fed Bernanke comments from today’s much awaited Jackson Hole Symposium. Rate opens Europe around $1.2515. Sell interest noted between $1.2520/25 ahead of $1.2535/40 with reports of stop buy orders having been built up above $1.2540. Option related offers, as well as US corp sell interest, remain in place from $1.2580 through to the barrier at $1.2600, though size of the barrier interest has been trimmed. Bids seen toward $1.2500, with interest extending to $1.2495. Further interest noted to that $1.2487 low with stronger bids between $1.2470/50. End month fix flows and reaction to Fed Bernanke in focus but watch for Eurozone headlines.
EasyForexNews Research Team