Closed in NY at $1.3284 after rate had been shoved to a session low of $1.3271 ($1.3270 61.8% of the 2013 range $1.2998-1.3711) following ‘hawkish’ FOMC Minutes, though the recent euro positivity had been given a knock as traders adjusted positions ahead of end of the week event risk, Italian elections, release of EZ PMI’s and Germany Ifo and ongoing Cyprus concerns. Rate traded early Asia within a $1.3270/90 range before traders targeted stops through $1.3270/60, the triggering of which extended lows to $1.3256. A slight reprieve as rate edged back to $1.3267 before a second wave of selling took rate to extended lows of $1.3236 ahead of the European open. Bids reported between $1.3230/20 with more stops below, a break to expose stronger demand at$1.3210/00. Resistance remains back above $1.3300, with sell interest said to extend to $1.3350. The dollar recovery seen across the board with the firm tone holding into Europe. EZ flash PMI’s begin with France at 0758GMT through to the EZ at 0858GMT. Tuesday’s strong ZEW reading for Germany has market expecting stronger numbers. The afternoon sees a raft of US data, CPI and jobless claims at 1330GMT, US PMI at 1358GMT, Phila Fed and housing data at 1500GMT.
EasyForexNews Research Team