The pair closed NY Friday at $1.2839 after recovering off a session low of $1.2797. Rate was marked lower into opening Asian trade, opening the session at $1.2821 before marking lows at $1.2817. Rate bounced to $1.2849 as main Asian centres opened, only to get knocked back to $1.2820 as yen spiked higher on reported Amari comments ‘yen strength has been largely corrected’, dropping euro-yen 150 points from its open. Recovery in yen pairs relieved the early pressure with euro-dollar able to edge its way to an overnight high of $1.2852 before it settled between $1.2840/45 into Europe. Whitsun holiday seen in some European centres and expected to add to a usually subdued Monday trading session. Sovereign demand seen placed on approach to $1.2800 ($1.2797 Friday low), with talk of stronger interest between $1.2790/70 ahead of $1.2750. Offers $1.2850/60, $1.2890/00 with weak stops above. If stops triggered to expose next band of resistance between $1.2910/20. A very light EZ data calendar with most turning focus toward Thursday’s release of flash PMI’s as well as Friday’s Germany Ifo (forward looking after recent weak GDP). Wednesday Bernanke testimony to the JEC and FOMC Minutes Wednesday seen key to dollar direction.
