The pair closed in NY Friday at $1.3052, after easing off a session high of $1.3130, with rate marked higher into early Wellington trade on the back of expected euro-yen demand (following no censure from G20 on Japan for recent monetary policy moves), as well as Italy eventually re-electing president Napolitano which is expected to bring about some political stability in the EZ third biggest economy. Rate was initially marked higher into the Wellington open, the rate spiking on to $1.3117 in thin conditions before dropping back to $1.3039 before it bounced to $1.3094 before the main centre session of Asia opened. Rate eased off to $1.3054, where it met decent demand in the area between $1.3060/50, edging back to $1.3084 before drifting back to $1.3064 ahead of the European open. A fairly light data calendar through the European morning, though several speakers due up. Little US data (US existing home sales 1400GMT) with EZ consumer confidence also due at 1400GMT. Eurozone flash PMI data Tuesday seen as the early focus this week. Bids remain in place to $1.3050 with stops noted on a break of $1.3040. Further demand $1.3010/00. Resistance seen from $1.3125 through to $1.3150.
EasyForexNews Research Team