The pair tried to recover some recently lost ground in overnight trade but continued to be capped at the $1.2900 level before it ended at $1.2847 in New York. Early Asian dealings then saw euro-dollar sliding to a session low of $1.2840, weighed down by euro-yen’s early drop following Japan PM Abe’s remarks on the yen. Euro-dollar however recovered strongly after, just as euro-yen did as well, the former pushing through the opening levels to $1.2855 initially as rumored demand entered the fray off the morning lows. Gains extended marginally to $1.2858 toward the late morning but ran out of steam after that, well below the overnight high. The pair held near that peak through the early afternoon and last trades at $1.2856, with a move through the Sep 22$1.2816 low, also the low for 2014 so far, expected to run into rumored strong demand in front of a $1.2800 barrier, with next layer of bids then noted at $1.2788, coinciding with the 61.8% of the pair’s $1.2043 to $1.3993 move, before the July 9, 2013 low of $1.2755. Key event risk for the euro-dollar is seen coming from the German Ifo Business Climate number due out in European trading this evening.
