Closed in NY Monday at $1.2815, the rate recovered off pullback lows of $1.2800 in the US afternoon as markets rallied on better prospects of a fiscal cliff resolution. The rate had earlier eased off session highs of $1.2820 after Swiss bank supply squeezed stops ahead of the London fix. Euro-dollar slipped sharply after the NY close to $1.2767 as Moody’s cut France’s credit rating by one notch to Aaa1. Short covering and demand from US banks aided recovery attempts to $1.2790, before large euro-aussie sales from prop accounts pressed. The rate eased to fresh intraday lows of $1.2764 and sat heavy, demand in the dip bounced and the rate extended gains through $1.2800 to $1.2811 on support from Asian names. Late profit take sales eased to $1.2790 ahead of the European open. US data light today with highlights from Building Permits and Housing Starts, released at 1330GMT.
EasyForexNews Research Team