Closed in NY Thursday at $1.3240 after experiencing a sharp pullback to $1.3202 off an intraday high of $1.3284 as rate reacted to negative Fiscal Cliff comment. Rate had corrected to $1.3249 ahead of the close as House Speaker Boehner called on House Republicans to reconvene Sunday, boosting fresh hopes that a compromise can be reached. Rate eased to $1.3231 in opening Asian trade before Tokyo began buying back into euro-yen. The rally back in this rate, aided by CTA demand, lifted euro-dollar to $1.3253 (61.8% $1.3284-02) before momentum faded and it then drifted off to $1.3237 before settling between $1.3238/48 through the Asian afternoon and into Europe. Rate currently trades around $1.3245. Demand for euro-yen expected to keep euro-dollar buoyed through the European morning, as it did Thursday, but the Fiscal Cliffhanger in the US again expected to rear its head into afternoon trade as political manoeuvring continues in the attempts to avert the consequences of the US falling over the edge. Euro-dollar offers remain at $1.3253, a break to expose $1.3265 (76.4%) ahead of a retest on $1.3280/85. Stronger offers $1.3295/1.3310. Support $1.3235/30, $1.3220 and $1.3205/00.
EasyForexNews Research Team