The pair closed in NY Thursday at $1.3059 after rate had seen a whipped reaction to the ECB 25bp refi rate cut, the initial drop to $1.3122 then recovery to $1.3218 was followed by an extended drop to $1.3037 (55-dma $1.3035 Thursday, today at $1.3031) as markets reacted to Draghi comments that technically he was open to negative interest rates. A Tokyo holiday saw trade subdued through the Asian session, with the release of key US employment data this afternoon also acting to quieten activity. Rate touched an early low of $1.3056 in Asia, with rate slowly creeping up to $1.3078 before drifting to $1.3070 ahead of the European open. EZ PPI at 0900GMT, provides the morning interest but US NFP to overshadow. Bids remain at $1.3035/30, stops on break of $1.3025. Further support seen into $1.3000 ahead of $1.2980/70 and $1.2950. Offers $1.3080, stronger into $1.3100. Further sell interest then seen at $1.3120/25 with stops above. Apart from data market will be on watch for any comment following yesterday’s ECB rate move, especially any leakage of how the board came to its decision.
