The pair started in Asia this morning at $1.2507 after a $1.2501 to $1.2620 range during the US hours. Euro-dollar fell to its $1.2501 low soon after the upbeat US payrolls data but was kept afloat by rumored demand interest linked to a $1.2500 barrier, dealers said. Those bids remained in play this morning with euro-dollar slipping to $1.2509 and then to $1.2507 in early dealings but seeing sufficient demand off those lows to keep it from testing $1.2500. US dollar profit-taking then kicked in, giving the euro some relief from that early pressure, and it climbed back through the initial $1.2516 highs. It continued higher around mid-morning, pushing through $1.2519 for a high sofar of $1.2521. Euro-dollar was last at $1.2518. While those $1.2500 bids remain, dealers expect euro-dollar to continue probing higher but many in the market are intent on selling the pair on rallies, which is likely to keep the pair’s gain limited to around $1.2560/70 for the day ahead.
