Closed in NY at $1.3020 after settling back from seeing extended highs of $1.3032, before pulling back to $1.3008 ahead of the close. Early demand into Asia met strong headwind sales above $1.3020 which restricted highs to $1.3023. The rate challenged this area a further two times but failed on each attempt, though corrective pullbacks were restricted to $1.3010. US Employment Report this afternoon (1230GMT) the main focus on the day with market to gauge risk going forward. CitiFX Wire suggest that this release could be seen as a more politically sensitive release suggesting that a strong number would be good for risk generally and prompt dollar sales, adding that a weak number would prompt a knee jerk buying of dollars on risk aversion but if seen would support a Romney win and could provide for risk appetite when the analysts give their view (funds already seen switching out of dollars after the recent debate). Ahead of this we have German FinMin Schauble speaking at a Berlin Capital Club breakfast (0630GMT). Offers $1.3023-32, stronger toward $1.3050. Bids $1.3010/00.
EasyForexNews Research Team