Closed in NY Thursday at $1.3375 after rate had seen a strong rally to $1.3393 on positioning ahead of today’s LTRO repayment announcement (due around 1100GMT). Rate saw an early high of $1.3380 into early Asian trading before resuming the corrective pullback, the rate pressed down to $1.3350 before meeting willing demand into the dip. This buying prevented reported stops through $1.3350/40 from getting fired off. Rate recovered to $1.3367, dipped back to $1.3353 before pushing higher again, touching $1.3372 ahead of the European open. Germany Ifo due at 0900GMT to provide early interest but this will be overshadowed by the LTRO repayment announcement around 1100GMT. Market speculating that between E100-150bln to be paid back with market positioned for this outcome. Expect a possible uptick on release if this proves to be the case, though profit take sales could counter any further upside progress. A higher repayment number and rate can lookk set to retest recent highs between $1.3395/1.3405, a break of $1.3405/10 to expose stops. Below and expect longs to quickly exit. Support remains into $1.3350, stops $1.3350/40.
EasyForexNews Research Team