The pair started in Asia at $1.2646 after it had traded a high of $1.2676 in overnight dealings, buoyed by promising China and EZ flash PMIs but also by weekly jobless claims and leading indicators data. Early risk-on sentiment helped carry euro-yen higher and euro-dollar followed suit to a $1.2662 high before profit-taking sapped the gains. Euro-dollar retreated soon after, sliding through the initial opening level but found dip-buyers after hitting a $1.2644 Asian low. It crept up to $1.2650 before the market lost interest and left the euro shuffling around near that mark through the rest of the morning. Euro-dollar was last at $1.2654. Reported demand below theovernight US low of $1.2631 is seen from $1.2625/20 and then at the $1.2605/00 area with an option expiry also noted at the latter mark and associated stops expected if that breaks. Up top, minor offers are noted at $1.2670, these are expected to fade into $1.2680/85, with an option expiry also seen at $1.2695 before larger offers are then seen on a rally through $1.2700.
