The pair closed in NY Tuesday at $1.2511 after rate had pulled back from a late European morning high of $1.2570 to a low of $1.2478 post London fix before it settled between $1.2480/1.2520 into the close. Rate remained buoyed above $1.2500 in early Asian trade, with more attention seen on the effect of fallout from the Russian market on the Australian dollar. Early euro-dollar trade was confined to a $1.2501/16 range before the push lower in the Aussie acted to take euro-dollar below $1.2500 and on to a low of $1.2486. Rate was seen holding heavy ahead of Europe. Support seen into the area of NY pullback lows between $1.2482/78. Further demand seen into $1.2470, a break to expose Tuesday’s lows between $1.2440/35. Resistance remains into $1.2520, with fresh sell interest noted again above $1.2550, though not as large as Tuesday’s interest. Domestic EZ interest provided this morning by EZ CPI and employment costs at 1000GMT, with more focus on US CPI at 1330GMT then the FOMC decision at 1900GMT, attention on ‘considerable time’ in the statement. Russian market melt down remains a contributing factor in euro strength with interest also on the Greece and its presidential vote at 1700GMT.
