Less dovish comments from the Feds sparked a selloff in the euro during NY session, sending the pair down to $1.3810 before closing at $1.3833. The euro pretty much unchanged after it stepped into Asia at $1.3833 following a dollar rally post FOMC last night and the pair marked a tight range of $1.3814 to $1.3835. A US name was reported selling in early session at $1.3830 as the rate drifted down to low of $1.3814 but Asian traders respected NY’s low of $1.3810 as profit takers trimmed positions, renewed buying interest in euro-yen forced the euro back to Asia opening level. Trailing stops were reported at $1.3835 after the euro plunged from yesterday high of $1.3934 in Asia and as we write the euro-dollar hit fresh session high of $1.3838 before retreating to $1.3833 last. Reported offers at $1.3850 should capped the pair before Europe steps in and medium demand seen at $1.3800/10 on approach and the 21-dma at $1.3811. Market will be watching Germany’s February PPI out later, jobless claims and Philadelphia Fed data tonight.
