Closed in NY Wednesday at $1.2780, after recovering off a low of $1.2750 to $1.2790, with corrective pullbacks ahead of the close contained by $1.2765. Rate edged to an early high of $1.2786 in Asian trade, reversed to mark lows at $1.2774 before continuing its recovery, slowly stepping its way to an overnight high of $1.2794, settling around $1.2790 ahead of the European open. Cyprus remains the key focus with today’s bank re-openings to provide interest. Germany retail sales data due at 0700GMT (-0.6% m/m the median, 1.20% y/y) with Eurozone M3 at 0900GMT provides the morning’s data interest, with US Q4 GDP and initial jobless claims at 1230GMT. The Chicago Report then due at 1345GMT. Market seen sitting short euros with a possible paring of part of these positions ahead of the weekend likely, one bank suggesting that its end month model is showing a sell signal for dollars, albeit weak. If rate does attempt a recovery there appears to be a mix of interest between $1.2800/20, offers noted in this area, with talk also of stops through $1.2810/20. Stronger offers then seen into $1.2840/50. Support remains into $1.2750, corporate demand interest again reported into dips, a break of $1.2730 to expose barriers at $1.2700.
EasyForexNews Research Team