Closed in NY at $1.3360, off traded highs at $1.3368 seen after the markets reacted to Fed Bernanke’s dovish comments concerning US unemployment. Rate basically flatlined through Asia with trade contained within a relatively tight range of $1.3343/66. Early French name demand for EUR/JPY provided the move up to the overnight highs though momentum failed to take it through the NY top, with Japanese exporter EUR/JPY sales cited for pressing the rate back to the lows. Rate trades into early Europe around $1.3350. The recent focus on Eurozone peripheral bonds boosts interest in today’s Spanish bill issuance (3m and 6m) ahead of Italian linker and zero-coupon supply. US house prices and US consumer confidence provide the afternoon’s interest ahead of Fed speakers after the European close. Offers seen into $1.3370 with Asian traders noting stops positioned through $1.3370/80. A break here to open a move toward $1.3400 where next sell interest resides. Above here and rate can extend toward $1.3415/20. Support $1.3345/40, a break exposes $1.3325/20, ahead of $1.3300/1.3280.
EasyForexNews Research Team