The pair traded a $1.3503 to $1.3555 range in the US last night before starting this morning’s session at $1.3533. The early risk-on environment, which fueled euro-yen’s initial gains coupled with the positive open in Japanese stocks helped lift euro-dollar to the session’s $1.3540 high before it then reversed direction. Euro-dollar took its cue from euro-yen’s turnaround also and slipped to $1.3526. Rumored demand from Asian accounts nudged the pair back up to $1.3535 before the pair then gave up the move andretreated again. Dealers said sell orders from $1.3550 were responsible for putting a lid on the pair and it slid to a $1.3520 low in the afternoon. Euro-dollar was last at $1.3521, with offers cited ahead, from the region of the overnight $1.3555 high, and then from $1.3574 toward $1.3580, with stops expected on a break above $1.3600. On the downside, bids are expected at $1.3495 and at $1.3480/75. The ECB meeting tonight is the main event risk, ahead of Friday’s US non-farm payrolls data.
