The pair closed in NY Tuesday at $1.2979 after rate was pressed to lows of $1.2964 during the NY afternoon, paring part of these losses into the close. Rate extended its recovery to $1.2984 in early Asian dealing before drifting back off to $1.2966. Rate then bounced to $1.2981 before settling around $1.2970 ahead of the European open. Asian traders note demand remains in place between $1.2965/50, with tech traders noting that the 76.4% retracement of $1.2796-1.3418 comes in behind at $1.2943 with stops seen placed on a break of $1.2940. Offers remain into $1.2985, more at $1.3000, though main sell interest noted around $1.3050. Traders also note that a decent sized $1.3055 strike option rolls off at the NY cut. EZ services PMI data due this morning from 0713GMT, through to full EZ release at 0758GMT, with EZ retail sales data following at 0800GMT. US data will turn focus toward employment, the market gauging the timing of Fed tapering as well as looking for clues to Friday’s key NFP. ADP data due at 1215GMT followed by weekly jobless claims (brought forward due to US holiday Thursday) and the employment component in the non-mfg ISM at 1400GMT.
