Closed in NY Monday at $1.2965, the rate recovered from a pullback low of $1.2929 after earlier posting a high of $1.2978. Euro-dollar ground lower in early Asian trade to $1.2942 before meeting demand in the dip, the pair extended gains and rallied to $1.2976 on hopes Spain could soon request a bailout. Profit take sales pared gains and aided by intraday selling from hot money accounts settled around $1.2960. Traders reporting sovereign bids and asset managers continue to play ranges in headline driven markets. Reported offers at $1.2980, stronger through here at $1.3000 with stops set, more stops noted on a break of $1.3020. Initial support at $1.2950/40, ahead of $1.2930. Key data released today is the German ZEW Survey at 0900GMT, followed in the US by CPI at 1230GMT.
EasyForexNews Research Team