Closed in NY at $1.3576, after rate had seen a late lift in NY to $1.3594. Rate touched a low of $1.3573 into opening Asian trade before fresh demand emerged, the barrier at $1.3600 taken out as rate rose to an initial high of $1.3618. Second wave demand lifted rate to $1.3624, but defence of next barrier at $1.3625 managed to counter. Rate dipped to $1.3604 before stronger demand emerged, took out $1.3625 with rate marking session highs at $1.3633 before settling around $1.3620 into Europe. Further barrier interest seen at $1.3650 ahead of $1.3675, with talk emerging of a very large $1.3750 barrier, topside of a wide $1.22750-1.3750 DNT structure. A fairly active Asian session considering this afternoon’s US employment report. Europe morning to focus on EMU manufacturing PMI data from 0843GMT (major economies; Spain 0813GMT) ahead of EMU flash CPI and employment at 1000GMT. LTRO payments will also be watched. US employment to overshadow at 1330GMT, market range 140k-190k with release outside to cause major react. Employment rate, no change from 7.8% expected (Fed 6.5% threshold for rate move). Resistance seen into $1.3650, support $1.3600, $1.3570.
EasyForexNews Research Team