Closed in NY at $1.2990 after rate had been pressured to extended recovery highs of $1.3040 on reaction to weaker than forecast US NFP data, with the corrective pullback into the close seen on the back of news that the Portuguese Constitutional Court had rejected four out of nine contested austerity measures, which could deprive the country of roughly E900mln in savings and revenue benefits in its E5bln package. Euro-dollar was marked down into the Asian open, early Wellington opening around $1.2965 as market reacted to press articles concerning the knock on effect of the Portuguese court decision, but rate met willing buyers in the dip to $1.2962 which took the rate back above $1.3000 and on to $1.3006, the move aided by early demand for euro-yen out of Tokyo as the Japanese currency continued to soften following last week’s BOJ policy announcement. Rate settled between $1.2980/1.3000 through the balance of the session, trading around $1.2983 into Europe. Yen remains a key directional element into Monday trade. Germany IP at 1000GMT the data interest. Bids $1.2980, $1.2965/60. Offers $1.3010, $1.3040/50.
EasyForexNews Research Team