Closed in NY at $1.2905 after rate had pulled back from session highs at $1.2971 to $1.2897 as rate tracked the negative reversal on Wall St, as well as reaction to anti-austerity protests in Spain. Rate pivoted $1.2900 in early Asian trade, edging to session highs at $1.2913 before turning lower on reported euro-yen sales. Traders that took long positions, ahead of reported strong demand at $1.2890, placed stops below $1.2885. These stops were triggered as a major US name sold from above $1.2900. The added weight took rate down to lows of $1.2864 before meeting willing buyers that cushioned the move. Recovery efforts remained shallow ahead of the European open, with rate currently trading around $1.2874 at writing. Demand seen into $1.2860 with more stops below. Regional and pan-German inflation provides the data interest on the day. Headlines remain a key market driver, with focus set on developments in Spain and Greece (general strike in Greece today). A break of $1.2860 to expose next band of demand between $1.2850-30, the 200-dma close behind at $1.2827.
EasyForexNews Research Team