Closed in NY at $1.2988 after rate had eased off post FOMC react highs at $1.3002 to $1.2977. Rate drifted down to $1.2980 in early Asian trade but buyers emerged as China equity market opened with a positive tone which provided a fresh boost for risk. Euro-dollar was lifted to an initial high of $1.3016, as stops above $1./3015 were targeted and triggered. Rate eased back, met demand placed at the NY high of $1.3002 before getting another lift, this time by a resurgent Aussie, which took rate to an extended high of $1.3034 ahead of the European open. Rate retains a buoyant tone into the session, currently sitting around $1.3025. Talk of barrier interest at $1.3050 expected to draw defence sales ahead. Asian central banks were noted dollar intervention buyers overnight and could recycle into euros on dips. Opposing this though, the high Cny fix may see produce downside pressure from that area. Eurogroup meeting today may produce comments to watch for. US CPI and retail sales the stand out data focus. Bids seen into $1.3000, more toward $1.2980.
EasyForexNews Research Team