The pair Closed in NY Tuesday at $1.2998 after slipping back from a NY recovery high of $1.3028 to $1.2988 before edging higher into the close. Early Asian trade was confined to a tight range around $1.3000 before euro-yen sales pressed euro-dollar back to that NY pullback low of $1.2988 before bouncing back to $1.3006 then settling back around $1.3000 through the balance of the session. Disappointing Germany flash PMI data Tuesday has market boosting expectations for the ECB to cut rates at its next meeting, with focus now turning to today’s Germany Ifo release for further ‘confirmation’. Asian traders note offers in place at $1.3015/20, more toward $1.3030 with stops above, said to extend through to next resistance at $1.3050. Further sell interest then seen dotted from above $1.3050 through to $1.3100, with talk of sovereign sell interest placed above $1.3065. Option linked demand seen placed into $1.2980. Germany Ifo the standout interest during the European morning, with US durable goods data due at 1230GMT providing afternoon interest. Italy appears closer to announcing a new PM, Amato the front runner for a unity government, confirmation could give the euro a react lift.
EasyForexNews Research Team