Closed in NY at $1.3077, after rate had been pressured off session highs of $1.3319 to $1.3048 on reaction to the Italian election results. Risk positions were hit hard as the exit polls predicted a hung parliament, with Berlusconi performing well in the Senate vote. the three way split has caused risk aversion ripples through stock markets with this tone restricting recovery efforts in the euro overnight. Euro-dollar touched an early low at $1.3053 before picking up light demand which, in the thin conditions, allowed rate to edge back above $1.3070 before stronger, private investor demand lifted rate on to $1.3089. Rate settled above $1.3080 in mid Asian trading before fresh sell interest emerged into the afternoon which punched it down to an extended low of $1.3039. Rate had recovered back above $1.3060 into early Europe. Demand reported from that traded low through to $1.3000, with European corporate interest waiting below the figure. Resistance seen from $1.3090 through to $1.3105, more at $1.3120. A light data calendar in the EZ today, though a few speakers noted on the card. Apart from continued fallout from the Italian election, key interest seen in Fed Bernanke’s semi-annual testimony at 1500GMT.
EasyForexNews Research Team