Closed in NY at $1.2632 after rate had seen highs Thursday of $1.2652, following an unchanged rate decision by the ECB, sinking to $1.2561 as Draghi outlined (an already leaked) bond buying plan. However, release of upbeat ADP data, ahead of today’s US NFP release boosted risk allowing euro-dollar to recover as it tracked a solid performance in equity markets, touching a recovery high of $1.2647 ahead of the close. A fairly quiet start into Asia was relieved when rate popped up to $1.2643, but momentum quickly faded as rate met willing sellers. Rate settled back around $1.2630 through early Asian afternoon trade, picking up a weak bid tone ahead of the European open. The US Monster Index released overnight also supported a strong employment reading and was seen adding to the underlying risk-on tone. However, this afternoon’s release of US employment data expected to subdue markets, with volatility to the fore after. Offers $1.2650/55, stops above. Tech resistance noted between $1.2661-63 ahead of stronger offers at $1.2670/80. Support $1.2625/20, intraday stops $1.2610.
EasyForexNews Research Team