Closed in NY Thursday at $1.3262 after ECB Draghi’s press conference was seen hawkish, analysts putting back any thoughts of a rate cut to Q2 from Q1, which had spiked rate to a high of $1.3273 from pre comment levels of $1.3114, and recent lows at $1.3037 (low Thursday $1.3039). Early Asia took over the baton of euro demand, extended the move to $1.3280 with early euro-yen buying seen as the main driver. However, euro-dollar met decent sell interest at the $1.3280 level (traders noted an Asian sovereign was fading the move from above $1.3270) which capped the early enthusiasm and allowed rate to drift lower on profit take covering to $1.3251. Recovery efforts off this level were then restricted to $1.3265 through the balance of the session, trading into Europe around $1.3260. Traders have reported stops in place below $1.3245 from short term specs. Offers seen at $1.3280, more between $1.3295/1.3310 ($1.3299 2013 highs Jan2) with stops above. Analysis of Draghi comments to continue through Friday, and with a light data calendar expected to leave rates open to further position adjustments.
EasyForexNews Research Team