Closed in NY Monday at $1.3515, the rate having continued its corrective pullback off Friday’s post US payrolls highs of $1.3711 through Monday’s session as markets pared back longs on political concerns in Spain and Italy. Rate touched a low of $1.3505 before recovering into the close. Rate touched a high of $1.3521 into Asian trading before turning lower again, the break below $1.3500 allowing rate to grind its way down to extended lows of $1.3481, holding heavy into Europe. Rate currently trades around $1.3585. Euro unwinds in straight euro-dollar and via the crosses continue to provide the main weight, with market keeping focus on the political developments, and the effect on EMU periphery bond spreads, with attention also turning toward Thursday’s ECB rate announcement and press conference. Bids are seen into $1.3480 with stops below, a break to expose next bids at $1.3575/70 with larger stops below. Minor demand then seen into $1.3550 ahead of $1.3530. More stops noted below. Resistance $1.3515/20 ahead of $1.3545/50. EMU services PMI data due this morning, Spain up at 0813GMT through to EMU at 0858GMT. EMU retail sales due at 1000GMT. US non mfg ISM the interest into the afternoon (1500GMT).
EasyForexNews Research Team