The pair ended NY session at $1.2410 after having dealt a range of $1.2370 to $1.2495. Strong US retail sales overnight set a firmer dollar tone, with US yields and stocks recovering higher. The spot drifted down to session low of $1.2391 from an early top of $1.2412 before recovery to $1.2404. The euro traded in sideways fashion despite euro-yen gapping down after better Japan industrial production data. The euro-yen dived to fresh session low of Y146.96 from session high of Y147.73 but recovers quickly to Y147.27 last. The euro stands at $1.2395, expected to trade in range-bound market as strong demand noted at $1.2355-50 with option expiry of E803 mln, at $1.2400 there’s option expiry on Friday (E1.06bln) and ahead of 21-dma $1.2434 there’s reported supply at $1.2475. Looking ahead, eurozone industrial production, employment and Spain inflation data will be out later. The failure ahead of the $1.2506-31 region sees bearish dominance reconfirmed. Immediate pressure has returned to initial support in the $1.2325-45 region with stops noted below these levels and also below $1.2240. Overall focus remains on the $1.2042-1.2241 region while $1.2506-31 caps.
