The pair started this morning at $1.2613 after last night’s $1.2545 to $1.2632 range during the US hours. Euro-dollar marked small gains to $1.2618 just after the day started and then spent the rest of the morning drifting slowly lower. Euro-dollar traded down to $1.2604 and then encountered minor demand, believed to be option-related, from around the $1.2600 mark. A small recovery followed but offers persisted, nudging the pair back down to a $1.2596 low. There, those option-buyers continued to pick up euro-dollars and kept it from dropping to further lows. Since then the pair has been holding just above $1.2600 and was last at $1.2601. Further losses would put the pair in range of a move below the NY low of $1.2545, before the 2014 low of $1.2501 then comes into play. There’s also been talk of a large option expiry just below at $1.2500, due next week.
