The pair started the week lower at $1.2827 in Asia Monday, the spot made a brief breach of NY’s low of $1.2831 to session low of $1.2826 before recovery to session high of $1.2868 and retreats to $1.2862 last. Lower US yields sparked general dollar liquidation, pushing dollar-yen and USD index lower in morning session. The euro pullback from NY/Asia lows on back of short covering, rallying above the option expiry at $1.2850 but shy of NY’s high of $1.2878. Afternoon session saw the euro eased off from the highs as the US yields bounced off from the lows. Euro bears continue to target the July9 2013 low of $1.2755 and 2013 low of $1.2746 as the next significant support area,before medium demand and barrier option expiry at $1.2800. On the topside medium offers noted at $1.2900 with stronger offers at $1.2930/35. Looking ahead, Dragi will make two public appearances on Monday at Brussels to give his regular quarterly testimony to the European Parliament’s Economic and Monetary Affairs Committee, followed by Thursday in Vilnius, Lithuania. Tuesday Markit Economics will publish its “flash” September PMI indices and also Germany’s Ifo Institute will release business confidence
