The pair closed in NY at $1.3077 after rate had seen a sharp recovery boost to $1.3108 following the release of weaker than forecast US ISM data, seen by most analysts as putting back thoughts of Fed tapering and catching the market over long dollars. Rate did pull back to $1.3068 from highs before edging higher into the close. Rate eased to $1.3064 in early Asia before getting lifted to session highs of $1.3081 on euro-yen demand, but as this buying faded and then reversed so euro-dollar drifted off to $1.3057 before settling between $1.3060/65 ahead of the European open. A reasonably light data calendar for today, EZ PPI due at 0900GMT with market awaiting main data from Wednesday including services PMI and US ADP ahead of the main events of ECB meeting and US weekly claims Thursday and US NFP Friday to close out the week. Offers seen placed at $1.3080/85, a break to open a move back toward $1.3108 with Asian traders noting offers placed toward $1.3110 with stops above. Support seen at $1.3050 (38.2% $1.2956-1.3108), with option linked stops noted below, a break to open a deeper move toward $1.3035/30 ahead of $1.3015/00.
