Closed in NY at $1.3306 after rate had recovered off session lows of $1.3264 (lows seen on reaction to EU Juncker comments on the strength of the euro) to $1.3319 then eased into the close. Rate extended this easing to $1.3294 into early Asian dealing before it bounced to mark session highs at $1.3318. However, recovery efforts met decent resistance at this level as sales of euro-yen, into the Tokyo fix, along with euro-Aussie sales countered then pressed rate down to $1.3279. CTA and macro demand into the dip cushioned the move and allowed rate to settle between $1.3280/00 through the Asian afternoon, the rate trading around $1.3287 ahead of the European open. EZ Dec CPI due at 1000GMT seen as the morning’s highlight data release, with ECB Nowotny and Asmussen also due to speak during the day. A new German 10-yr bund sale (E5bln) at 1030GMT. US CPI at 1330GMT with some seeing chance of downside risk to this number following the soft PPI report Tuesday. Euro- dollar demand seen placed between $1.3280/75 from CTA and real money, with stops also mentioned sub $1.3280. Resistance $1.3320 with stops from $1.3330.
EasyForexNews Research Team