Closed in NY Tuesday at $1.3388, just off recovery highs at $1.3396 with the earlier release of a stronger than forecast Germany ZEW cited for providing the buoyancy. Rate had settled between $1.3385/95 through the main part of the NY afternoon into the close. Rate picked up fresh demand interest into the transition from NY into Asia, a UK clearer and a French name noted buyers that soaked up supply in the $1.3400/10 area. Rate progressed on to $1.3434, after stops above $1.3425 were triggered, but momentum then faded. Rate eased off, finding support ahead of $1.3400 ($1.3406 pullback low) before edging back above $1.3410 into Europe. German PPI and CPI data due up at 0700GMT to provide the early interest, US PPI at 1330GMT into the afternoon, with Eurozone consumer confidence at 1500GMT gaining some interest. ECB Noyer in a WSJ interview was seen countering calls for a cut in the refi rate, preferring to narrow spreads. ECB Asmussen suggested market could be cautiously optimistic on Q1 growth following a weak Q4. Both comments seen aiding current euro buoyancy. Bids $1.3385/80. Resistance remains into $1.3435, more at $1.3450/60. Fed FOMC Minutes due for release at 1900GMT.
EasyForexNews Research Team