The ECB’s rate cuts and the announcement of the ABS purchase plan were not widely anticipated by the markets overnight with the result being a sharp sell-off in the euro across the board. Euro-dollar traded at fresh 14 month lows of $1.2920 last night during the US hours and started this morning with another move down toward that after it opened at $1.2944. Euro-dollar marked a low of $1.2922 very early this morning but the falls were contained by reported demand, likely linked to a rumored $1.2900 barrier. The pair saw a minor recovery off that low later in the session but gains were also largelylimited as the outlook for the euro remained weak. The pair got up to around $1.2930 but never really saw much appetite to take it further up ahead of tonight’s US payrolls data release. Euro-dollar was last at $1.2934. There’s talk of stops at $1.2970 and fresh selling interest said to be beuilding from arund $1.2980. Further up the $1.3100-10 region is now seen as key resistance with a close above to confirm an easing of bearish pressure with sellers expected to be keen to sell any decent bounces.
