The pair had dropped to a $1.2883 low in the European session after ECB Draghi’s comments but then consolidated between $1.2913-32 for the remainder of the US holiday-thinned session before opening in Asia near $1.2915. Euro-dollar opened heavy in Asia as markets reacted to the dovish BOE and ECB comments, sending the pair back near the overnight low, to $1.2890. The move however stalled just shy of rumoured sell-stops below $1.2870, thanks in part to bids believed to be for sovereign accounts. With further bids then spotted from $1.2850 and $1.2800, euro-dollar extended the slow grind and made a show back above $1.2900, however recovery attempts continue shallow, say traders. Ahead of the US payrolls report at 1230GMT, dealers are advising cautious buying on further dips, highlighting the presence of large stops from $1.2950 and $1.2975/80, before fresh sell orders would then come into play from $1.3040/50.
