The pair closed Tuesday’s NY session at $1.3312, off late recovery highs of $1.3318 after rate had reacted to a sharp sell off in dollar-yen, suggested in turn to have been sparked by a negative performance on Wall St. The rate consolidated this move between $1.3308/17 through most of the overnight session, getting pressed to an extended low of $1.3302 ahead of the European open. Euro-dollar trading was again sidelined with most activity seen in dollar-yen, as traders took direction from Nikkei and JGB moves, with the Aussie also able to recover some more of Tuesday’s losses following release of better than forecast consumer confidence data. Hedge fund demand for dollar-Asia also provided some overnight interest. Euro-dollar offers seen placed into $1.3320, a break here to open a move toward $1.3330 ahead of stronger interest between $1.3340/50 ($1.3342 61.8% 2013 range $1.3711-1.2746). Support remains into $1.3300, a break here to allow for a deeper pullback toward $1.3285 then $1.3270. Eurozone member states release inflation data during the morning, Germany at 0600GMT, followed by EZ IP at 0900GMT with most expecting improvement following improved data from Germany and France.
