Closed in NY Friday at $1.2842 after rate had extended recovery highs to $1.2868 following the release of weaker than expected US ISM data. The recovery had begun in a holiday thinned European market with Asian sales of dollar-yen providing the main drive as the dollar came under general pressure. Rate began the Asian session between $1.2840/50, consolidating the NY move until another round of strong dollar-yen sales again influenced the rate higher. Rate pushed up to $1.2876 where it encountered reported sell interest placed above $1.2875, though the corrective pullback was shallow, touching $1.2864 before it edged on to $1.2878. Rate trades around $1.2865 into early Europe. Eurozone PMI manufacturing data begins with Spain at 0713GMT with others released through to EZ at 0758GMT. German state CPI’s due for release through the day, culminating in national CPI at 1200GMT. EZ unemployment due for release at 0900GMT. Offers begin from $1.2880 and said to extend to $1.2910, though some report stops mixed in above $1.2885. Support remains into $1.2840 with stronger interest noted into $1.2800. Corporate demand then seen placed from below $1.2800 to $1.2750. Cyprus and Italy headlines to be watched for.
EasyForexNews Research Team