Closed in NY at $1.2769 after rate had recovered off session lows of $1.2737, seen after rate had corrected back from its post Obama re-election react highs of $1.2876. Rate extended its recovery to $1.2781 into early Asia as rate reacted to the Greek govt winning its austerity measures vote, though by a slim majority. This early enthusiasm quickly faded and allowed rate to pullback to $1.2748 (76.4% $1.2737-81) on reported Japanese sales of euro-yen. Rate recovered to $1.2766 before another round of selling pressed rate down to $1.27643, with recovery efforts ahead of the European open holding below $1.2760. Attention today will be focused on the ECB rate decision at 1245GMT with most expecting no change but will watch the following press conference for a possible extension in the fixed rate, full allotment tender procedures as well as groundwork for a possible cut at the Dec meeting. Spain bond auction due ahead at 0930GMT will provide morning interest. Germany trade data due at 0700GMT. Bids remain $1.2745/35, more $1.2720/15. Offers into $1.2790 (38.2% $1.2876-1.2737).
EasyForexNews Research Team