The pair closed Thursday’s NY session at $1.2881 with early trade into Asia contained within a tight $1.2880/90 range before the sell off in the Aussie and Kiwi weighed and pressed rate down to an eventual low of $1.2855 during the Asian afternoon. Rate recovered to settle between $1.2860/65 into Europe. Strong demand again reported between $1.2850/40 with sovereign interest being linked, a break below to open a deeper move toward $1.2825/20 ahead of $1.2800. Resistance remains at $1.2890/$1.2900 ($1.2900 61.8% $1.2930-1.2855), a break to open a move toward $1.2913 (late NY recovery high) ahead of stronger interest placed between $1.2930/40. EZ car production at 0600GMT and EZ construction at 0900GMT the morning’s data focus, though a couple of ECB speakers are also lined up at 1100GMT (Praet and Mersch). US Michigan Sentiment (1355GMT) the only stand out US data for this afternoon. Euro remains heavy but into the weekend, and with the lack of tradable data, we could be open to some recovery effort.
