The pair closed in NY Thursday at $1.3552 rate had recovered off an extended low of $1.3512, touching a high of $1.3572 during the NY afternoon, with the move up aided by release of softer than forecast US retail sales data as well as cable’s strong positive reaction to hawkish comments from BOE Carney. Rate drifted off to $1.3547 ahead of the close. Rate dipped back to $1.3548 in opening Asian dealing before the euro picked up demand interest, a North Asian account a stand out buyer as euro-dollar was driven higher by short covering in euro-yen, which pushed it to a high of $1.3565. Rate settled between $1.3555/65 through the Asian afternoon. The underlying tone for the euro remains bearish but strong demand on approach to $1.3500 provides cushioning. Traders link this interest to defence of the base of a $1.3500-1.3700 DNT structure.Asian traders note that the $1.3550 holds a decent sized option expiry for today’s NY cut and could act to anchor rate around. Resistance remains at the break down area of $1.3580/85, with Asian traders noting offers in place from $1.3580 through to $1.3600. Bids reported to be layered from $1.3530 to $1.3510, stronger toward the barrier interest at $1.3500 with stops below.
