Closed in NY Wednesday at $1.3014, having recovered off Ifo react lows of $1.2955 to $1.3034, with NY respecting those parameters as it recovered of the late session lows of $1.2974 to $1.3029 into the close. Early trade in Asia was contained within a tight $1.3010/20 range before buyers emerged, though move above $1.3040 was reported on light demand, before model and option linked accounts (seen short gamma) extended the move on to $1.3062. Traders Wednesday had reported sovereign sell interest in place above $1.3065, today noting stops in place above $1.3070. However, if stops triggered expected to meet further sell interest placed through to $1.3100. Pressure on the dollar was seen prompted in part by the low China yuan fix. Rate drifted off highs, trading around $1.3040 ahead of the European open. A light EZ data calendar today, though several speakers could provide headline risk. Recent German PMI and Ifo data now has market on ECB rate cut alert for next Thursday and will be noting any comment from officials ahead of this event. Euro-dollar demand seen back at $1.3020 ahead of $1.3010/00.
EasyForexNews Research Team