Closed in NY at $1.2917 having corrected off a session high of $1.2968 as market reacted to comments from Spain’s Rajoy that a request for aid was not imminent. The rate touched an early high of $1.2919 into Asia before turning lower, the move down influenced by heavy sales of Aussie as this currency reacted to the release of weak domestic data and softer than forecast non-mfg China PMI. US name profit take sales of euro-Aussie added to the weight as euro-dollar sank to an initial low of $1.2901. Rate jumped back to $1.2915 as euro-Aussie demand emerged into this rate’s dip, but risk aversion acted to counter and press rate down to session lows of $1.2893 before settling around $1.2900 into Europe. Bids reported in place to $1.2885/80, with stops positioned below. Offers are reported in place above $1.2925. Eurozone services PMI data due out this morning ahead of EMU retail sales though traders highlight US data as having more interest, namely ADP jobs data at 1215GMT and US non-mfg ISM at1400GMT ahead of Friday’s key US jobs report.
EasyForexNews Research Team