Closed in NY Tuesday at $1.2860 after rate had a violent swing from lows of $1.2828 to $1.2890, eased to $1.2842 before recovering into the close. Rate touched an initial low into Asia at $1.2852 before lifting back on euro-yen demand, the rate edging to a high of $1.2867 before momentum faded and move met fund supply. Strong dollar-yen demand influenced the rate lower as general dollar demand emerged, taking it to a session low of $1.2838 before recovering toward $1.2850 into Europe. Traders note offers in place between $1.2880/90 with talk that stops are now building between $1.2890 through to $1.2910. A break here to open a move toward $1.2930/40 which many see as a decent level to re enter shorts. Support remains at the overnight low at $1.2838, with bids dotted down to $1.2828 (NY-2013 low), though stops also said to be mixed in. A break here to expose barrier interest at $1.2825, with stronger demand seen from the $1.2820 level to $1.2800 with corporates linked to the interest. Another barrier at $1.2800 to draw demand ahead. Stops noted below. Germany Gfk confidence data due at 0700GMT followed by releases in the EZ periphery before we get EZ confidence indicators at 1000GMT. Cyprus headlines remain in focus.
EasyForexNews Research Team