Closed Thursday’s session at $1.2882 after correcting back from a pullback low of $1.2858, seen after rate was rejected from the $1.2899 level earlier in the day. Rate squeezed lower into early Asia to $1.28685 before recovering, the move up aided by a corrective bounce in euro-yen which took rate up to $1.2890. Offers said to remain in place into $1.2900, with Asian sovereign sales ahead of this level Thursday capping the day at $1.2899. A break above the figure expected to expose stops but further sell interest is said to be stacked above into $1.2905, strengthening toward $1.2920. Markets through Asia have been generally quiet, a knock on from Thursday’s US holiday, with markets there only opening for a half session today, as well as a Japanese holiday. Early thin conditions into Europe see that $1.2900 level under threat at writing. German GDP (3Q final) 0700GMT provides early interest ahead of German Ifo data at 0900GMT with several minor Eurozone releases dotted through the morning. A quiet US session, working a short session with a skeleton staff, should make for another quiet afternoon.
EasyForexNews Research Team