Closed in NY at $1.2566 after rate had squeezed to lows of $1.2555, the move taking direction from slippage in the equity markets, recovering off the lows as Wall Street pared losses into the close. Stops were targeted into early Asia, a Swiss name a stand out seller of euro-dollar as it broke under $1.2550, with sales taking it down to lows of $1.25211. Move seen as stops in dollar-Swiss were triggered through Chf0.9570, and the barrier in Aussie-dollar at $1.0200 was also targeted and taken out. Rate recovered to $1.2543 but the underlying tone remained risk off with rate easing back to challenge freshly placed demand into $1.2525. Fresh stops are also reported in place between $1.2525/15, a break to expose next demand into $1.2500. System stops noted now below $1.2480. Offers seen into the broken support area between $1.2550/55. Trade through Asia has again reported subdued with main focus remaining on ECB meeting Thursday and Friday’s US NFP. For today, Swiss CPI at 0715GMT will provide interest ahead of Eurozone svcs and composite PMIs from 0743GMT, EZ retail sales at 0900GMT.
EasyForexNews Research Team