The pair opened at $1.2691 this morning after a $1.2665 to $1.2785 range during the US hours last night. Early dollar gains drove euro-dollar down to a $1.2680 low before euro-yen’s strong recovery off the initial lows took hold of euro-dollar. MNI report last night suggested ECB Pres. Draghi “may redouble his efforts to talk down the euro contributed to the euro’s early heavy tone but the pair then rallied from around $1.2685/90 and was then lifted through $1.2700. Market chatter of stops at $1.2725 drew further demand and euro-dollar got up to $1.2716 before the move ran out of steam. The subsequent consolidation then saw euro-dollar drift back to $1.2693 with the pair last at $1.2698 ahead of the European open later. The pair is seen needing a movethrough overnight highs of $1.2785/90 for stronger recovery though strong offers are also noted at $1.2800/10 area. Immediate support seen at $1.2652/50, the lows traded just before this week’s FOMC minutes release.
