Closed in NY Tuesday at $1.3456 after rate had seen a recovery off intraday lows of $1.3364 to $1.3476 before drifting lower into the close. Rate settled the early part of the Asian session between $1.3445/60, extending lows to $1.3438 during afternoon trade before it settled between $1.3440/50 ahead of the European open. Headline reaction risk proved itself Tuesday as G7 comments, following the release of their Statement, tried in vain to clarify the Statement’s intention. G7 source comments highlighting Japan’s recent efforts to weaken the yen prompted a sharp reversal in recent yen easing, which caused knock on effects, though the euro retained an underlying buoyant tone via other crosses. Eurozone IP at 1000GMT the morning interest, though market will be watching US retail sales data at 1330GMT for main reaction. This will be the first major data to reflect the end of 2012 tax holiday and its effects on US consumers. Resistance remains in place at $1.3460, stronger between $1.3475/85 ahead of $1.3500. Support seen toward $1.3430/25, broken resistance now support (falling t/line from $1.3711 also broken and now providing some support in this area). Stops $1.3420.
EasyForexNews Research Team