Closed in NY Friday at $1.3160, off late session highs of $1.3174. Rate opened the Asian marked higher, as market reacted to the landslide victory of the LDP and NKP in Japanese lower house elections at the weekend, the rate tracking the mark up in euro-yen. The move took out barrier interest at $1.3175, which had help to cap trade Friday. Rate eased to $1.3170 before getting taken back up to $1.3185 on euro-Aussie led trade, this rate executing stops near A$1.2500, but rate struggled to hold gains and began to drift lower. The move down gained pace on profit take sales in euro-yen which took it down to session lows of $1.3149 before it settled around $1.3160 ahead of the European open. Offers now seen placed around $1.3200 (Bloomberg chart shows a high of $1.3190 while some Asian traders noted a pre open high at $1.3205), with sell interest seen to $1.3210. Support remains in place back at $1.3150, stops placed below $1.3140, with further demand seen into $1.3120. A reasonably light data calendar, EMU trade and hourly wage costs at 1000GMT, US Empire State mfg at 1330GMT and TICS at 1400GMT.
EasyForexNews Research Team