The pair closed in NY Tuesday at $1.3767 after rate had pulled back from an early Europe high of $1.3782 to a late Europe-NY low of $1.3723 before recovering to $1.3775 ahead of the close. Position adjustments ahead of this evening’s key FOMC announcement with the start to a QE taper still in the balance. Rate nudged to an early high of $1.3772 before turning lower and marking overnight lows at $1.3763. Fresh demand, linked to the positive Nikkei open and demand for euro-yen, emerged to take euro-dollar to overnight highs of $1.3775, with rate holding firm into Europe. Germany Ifo data due at 0900GMT to provide the morning’s focus though the mentioned FOMC later will overshadow. Offers remain in place at $1.3775/85, with stronger interest noted from $1.3800 through to $1.3820. A break here will bring the 2013 high of $1.3833 ($1.383361.8% $1.4940 May’11-1.2042 Jul’12; Oct25 high) into view, with a break here to expose heavier sell interest placed ahead of $1.3850. Bids begin from around $1.3750 and are said to extend down to $1.3730/20. Traders still see potential for an end year push higher, though still look for best levels to enter fresh shorts.
