Closed in NY at $1.3073 after rate had recovered off corrective pullback lows of $1.3053, having seen extended highs of $1.3122 earlier in the session. Rate came under further pressure in early Asia as Japanese exporters leaned into euro-yen, the sales taking euro-dollar to extended lows of $1.3044. Rate recovered to $1.3059, dipped to $1.3048 before picking up stronger demand interest which lifted it on to $1.3067 ahead of the European open. Yen plays continue to determine direction. German and French inflation due at 0600GMT and 0645GMT respectively, with the ECB Monthly Report to follow at 0800GMT, though these events not normally market moving. Attention will be on US weekly jobless claims at 1230GMT. The recent euro bullish tone, mainly driven by euro-yen demand, appears to have faded, though a break of Y100.00 in dollar-yen may spark another round of euro-yen buys. Euro-dollar Demand now seen into $1.3040 with stops below, a break to open a deeper move toward $1.3020 ahead of $1.3005-1.2990, though stops are seen mixed in on break of $1.2900. Resistance noted at $1.3070/80 ahead of stronger interest between $1.3100/10, stops on a break of $1.3120.
EasyForexNews Research Team