Closed in NY Friday at $1.2860 after rate had been pressed down from $1.2940 to $1.2838 on end month fix flows. Slow start into Asia with China, HK, Korea and Australia closed with early trade fairly subdued as it held between $1.2845/50. A weak opening for Asian equities, along with negative comments from the Slovak PM Fico concerning Greek membership of EMU, provided early risk aversion, with sales gaining momentum as Tokyo opened. Triggered stops through $1.2825 added to the negative weight to take rate to session lows of $1.2804, though larger stops sub $1.2800 remained intact. Rate managed to edge its way to a recovery high of $1.2827 ahead of the European open before settling around $1.2820. Bids remain in place into $1.2800 (Asian reserve manager?), a break to expose those mentioned stops, which if triggered to open a deeper move toward $1.2780. Bids seen here with more stops below, though if triggered expected to meet further demand between $1.2770/50. Resistance $1.2830 ahead of $1.2850. Eurozone mfg PMI from 0743GMT to 0758GMT ahead of EZ employment at 0900GMT.
EasyForexNews Research Team