The pair closed in NY at $1.3373 having recovered off a session low of $1.3279 to $1.3379 as the dollar was sold off in reaction to a WSJ Hilsenrath article, warning that by tapering QE the Fed isn’t implying any intent to hike short-term rates sooner. The corrective pullback into the NY close continued into Asia, the rate easing to $1.3356 in early trade, recovered to $1.3373 before turning lower again, drifting off to $1.3343 ahead of the European open. Profit taking ahead of the weekend, along with euro-yen sales were cited for the pullback in an otherwise subdued euro-dollar trading session. Asian traders have noted offers in place from $1.3385, and are said to extend to $1.3400 ($1.3390 Jun13 high). Talk emerged in Europe Thursday that a $1.18-1.34 dnt option structure is set to roll off today, though no mention of size. One Asian trader makes mention that the $1.3400 also holds digital interest though can’t confirm expiry date. Support seen at $1.3345/35 ($1.3341 38.2% $1.3279-1.3379), a break to open a deeper move toward $1.3310/00 ahead of $1.3280/70. Eurozone CPI at at 0900GMT provides morning interest, alongside ECB 3-yr LTRO repayment at 1000GMT. US PPI and IP data the afternoon focus.
