EUR/USD Analysis

Closed in NY at $1.3291 after rate had recovered off session lows of $1.3257 to $1.3311 before settling between $1.3275/00 through to the close. Euro-dollar trade mainly dictated by cross plays, with this scenario carrying across to Asian dealing Thursday, the rate edging to a high of $1.3315 as it tracked early euro-yen demand, then dropped back to $1.3270 during the Asian afternoon. Recovery to $1.3287 ahead of the European open aided by euro-yen positive reaction to Japan Amari comments that he found it regrettable that his recent yen comments had been misinterpreted. Euro-dollar offers seen at $1.3325/30, some linked to gamma plays, with corporate sellers noted behind between $1.3350/70. Support $1.3260/50, with minor stops noted through $1.3245/40. Further demand then seen into $1.3220 ahead of $1.3200. A fairly light data calendar for this morning, main interest to be on Spain bond auction at 0930GMT (3-yr, 5-yr, 30-yr). Afternoon interest to focus on US weekly jobless claims and housing data at 1330GMT, with Phila Fed at 1500GMT. Expect continued cross plays to provide euro-dollar direction, with range of $1.3250/1.3330 expected to contain.


EasyForexNews Research Team