Closed in NY at $1.2749 after rate had settled through the NY session between $1.2717-59 as earlier euro sales were caught offside as Draghi was seen not as dovish as many had thought he might be. Rate came under renewed downside pressure into early Asia as market reacted to the losses on Wall Street, the Dow closing below its 200-dma, finding support at $1.2734 before recovering. The upside correction gained momentum on the back of released China data, benign CPI weighed on dollar-Asia which reflected itself in dollar pressure vs majors. Euro-dollar demand lifted rate through the NY high at $1.2759, tripping residual stops above $1.2760 through to $1.2790. Spain/Greece concerns continue to keep euro gains in check, but lower US yields, following NY session UST auction, seen providing buoyancy. Long weekend approaching in the US (Veterans Day Monday) expected to prompt some position adjustments through the day. German CPI 0700GMT followed by French and Italian IP at 0745GMT and 0900GMT respectively with US UofM confidence data due at 1455GMT. Eurozone speakers also on the calendar.
EasyForexNews Research Team