Closed in NY at $1.3030 after rate had been driven lower on reaction to ECB official comments suggesting a rate cut could be considered depending on circumstances (BBK Weidman, a known hawk), the rate dropping from around $1.3200 to NY lows of $1.3002 before recouping some lost ground into the close. Rate traded early Asia between $1.3030/40, dipping to $1.3021 on reaction to euro-yen sales. A bounce back in the cross took euro-dollar to session highs of $1.3061 before it dropped back to $1.3040 ahead of the European open. Market remains wary of headline reactions, with today’s start to the G20 meeting in Washington likely to prompt some comment, though early reports suggest that Japan will not be singled out for its recent moves that have devalued the yen. A fairly light data calendar in the Eurozone today, with main attention to be focussed on US weekly jobless claims at 1230GMT and Phila Fed at 1400GMT. Several speakers also noted in the US session as the IMF and World Bank meet alongside G20. Bids $1.3020, stronger into $1.3000 with stops below. However, if stops triggered to meet stronger demand at $1.2990, with larger stops through $1.2970. Offers $1.3060/70, stops above.
EasyForexNews Research Team