Closed in NY at $1.3046 after rate had clawed its way up to a session high of $1.3054, the rate extending its recovery off Friday’s post NFP lows of $1.2955. Early Asia extended the corrective pullback, pressing the rate to early lows of $1.3026, the main weight seen as traders eased euro-yen away from the Y126.00 area. Euro-dollar recovered to $1.3039 before turning lower again before settling around $1.3030 into Europe. Moves through Asia were mainly driven by euro-yen action, this rate reacting to comments from deputy governor designate Iwata which tempered earlier yen sales after reports that Kuroda would call an early BOJ meeting, adding that a policy change wouldn’t be seen Mar20, most probably at the next meeting. Euro-dollar demand seen into $1.3020/10, more at $1.3000 with a break here to open a deeper move back to NY lows at $1.2988. Further demand seen into $1.2978 (76.4% $1.2955-1.3054), a break here to expose Friday’s lows at $1.2955, placing barrier interest at $1.2950 also in focus. Offers remain between $1.3045/55, more toward $1.3080. German inflation data at 0700GMT in an otherwise data light session. Subdued trade conditions remain, most seen needing a clear break of the $1.2950/1.3050 range to boost activity.
EasyForexNews Research Team