Closed in NY Thursday at $1.3050 after rate had seen recovery highs of $1.3096, only to be repulsed ahead of $1.3100, the move down to $1.3043 ahead of the close seen as a reaction to Wall St turning negative and failure in Italy to elect a new president after two electoral attempts. Rate marked early lows in Asia at $1.3047 before performing a steady, slow recovery, aided by a positive move in equities (rumour in Asia that Morgan Stanley will include China A shares into the MSCI EM index which boosted Shanghai), the rate pushing to highs of $1.3076 (61.8% $1.3096-43) before upside momentum faltered and rate drifted off, settling between $1.3061/69 into Europe. Germany PPI at 0600GMT, EZ current account at 0800GMT to provide the morning data interest, though these to be overshadowed by headline risk as the G20 meeting in Washington continues, Germany Weidmann and Schaeuble due to speak at 1130GMT. Reported comments from Japan Aso that no G20 member has opposed Japanese monetary policy already softening yen in late Asia. Euro-dollar offers remain at $1.3076, a break of $1.3083 (776.4%) to expose $1.3096, with offers seen to $1.3110, stops $1.3120/30. Support remains $1.3025/20, $1.3000.
EasyForexNews Research Team