Closed in NY at $1.3227 after easing off session highs at $1.3238. Rate marked overnight lows at $1.3223 in early Asia before French name buys of euro-yen provided some lift. Rate touched $1.3236 but failed to find the momentum to move above the NY high on this initial rally. Rate found support at $1.3225 on the pullback before picking up fresh demand which took it through $1.3240. The move triggered stops which took out barrier interest at $1.3250. Rate edged on to $1.3256 before momentum faded leaving it to settle around $1.3250 ahead of Europe. Risk remains in favour, as the two sides in the US Fiscal Cliff debate appear to be getting closer to a deal, or at least not moving away from each other, and with noted sovereign demand (Singapore agent banks noted dollar buyers overnight), seen keeping the underlying tone buoyant. S&P lifting Greek ratings 6 notches also aided the positive outlook. Resistance $1.3260, stops above. Further offers $1.3280/85 ahead of $1.3300. Bids $1.3245/40, $1.3220. Germany Ifo 0900GMT the morning focus.
EasyForexNews Research Team