Closed in NY Friday at $1.3194 after recovering off a session low of $1.31445, opening Wellington Mon at $1.3177 before the recovery extended in early dealing to $1.3235 before this opening enthusiasm wilted and rate began to drift lower. Rate eased to $1.3185 before settling around $1.3200 into the Tokyo open. Rate eased again, extending the pullback to $1.3182 before fresh demand emerged to edge it back to the $1.3200 area ahead of Europe. Asian traders have reported demand in place from $1.3175, the interest extending to $1.3150 with stops placed on a break of $1.3145. Offers seen positioned above the overnight high of $1.3235, with main interest noted between $1.3240/50. Strong Germany Ifo Friday, following on from a strong ZEW earlier in the week seen providing some euro positives, along with the euro seen as non participant in the ‘currency wars’, but the Italian elections (currently in process) and Friday’s reported lower than expected LTRO2 repayment seen providing potential negative headwinds. Moody’s overnight commented that the EZ growth forecast reduction is credit negative could also add to negative weight. A fairly light data calendar for today, Italian bond auction at 1000GMT to provide the morning interest.
EasyForexNews Research Team