Closed in NY at $1.3210, having been pressed to lows in this session of $1.3178 from earlier highs in Europe of $1.3286. Slow start in Asia before rate eventually edged higher, the move influenced by EUR/JPY demand, marking an early high at $1.3246 before faltering. Rate dropped back to $1.3215 on reaction to the release of weaker than expected HSBC China PMI data (48.1 – pre release rumours were looking for a strong number above 50), but dip met willing buyers that took rate through the earlier high and on to $1.32486. Rate trades in early Europe around $1.3235. Eurozone flash PMI’s will provide the early focus in Europe, with US jobless claims data the interest into early NY trade. Fed’s Bernanke and Dudley due to speak but not expected to provide any new insight. Offers seen placed between $1.3250/60 ($1.3261 76.4% $1.3286/1.3178) a break to open a move back toward the area of recent highs between $1.3284/86. Offers seen from this area and extend toward $1.3300 (barrier?) with stops mixed in above $1.3290. Support $1.3210, more close behind between $1.3205/1.3195 ahead of $1.3178.
EasyForexNews Research Team