The pair closed in NY Friday at $1.2999 with early trade into Asia contained within a range of $1.2983/1.2398 before post Tokyo fix demand for euro-yen lifted it to an Asian afternoon high of $1.3016 before it settled between $1.3005/15 ahead of the European open. Risk was given some support following Saturday’s release of stronger then forecast China PMI data (50.8 vs forecast 50.0), this morning’s release of disappointing HSBC PMI did little to dent this view. Eurozone manufacturing PMI’s will provide the morning’s interest though following on from Friday’s release of a much stronger than expected Chicago Report this afternoon’s PMI and ISM will provide the main focus. ECB policy meeting Thursday, along with key US NFP Friday noted in the background. Asian traders report offers placed from the overnight high through to the $1.3050/55 area with stops above. Further offers $1.3070/80, more stops above. First decent demand seen in place into $1.2950, with stops placed through $1.2950-40. Further demand seen into $1.2920 with more stops below.
