The pair started this morning at $1.2467 after last night’s $1.2465 to $1.2498 holiday-thinned range during the US hours. It was weighed down early by a stronger US dollar tone this morning, trading $1.2456 initially and then to on to a $1.2449 session low so far. The broader dollar gains continued to drag the euro down but the single currency recovered some of the lost ground around mid-morning, thanks in part to a strengthening euro-yen cross. Euro-dollar reclaimed $1.2465 in the late morning but gave up the gains again after that, this time sinking to a fresh low of $1.2446 although overall trade flows were muted as the market looks to welcome the start of December next week. Euro-dollar was last at $1.2447 and dealers expect the subdued trading to continue ahead, with option expiries on either side of $1.2420 to $1.2500 range expected to keep the pair fenced in. Topside stops are also seen above $1.2500, $1.2540 and $1.2600. Initial support remains at the somewhat pivotal $1.2444 level with stops noted below $1.2440 and a close below seen adding weight to the bearish case.
