Closed in NY at $1.3105 after correcting back from a late recovery high of $1.3133. Rate marked an early low at $1.3100 into Asian trading before recovering, the move up aided by EUR/JPY demand into the Tokyo fix but main demand emerged as rumours for a strong Chinese trade data release swirled. A UK clearer was a stand out buyer from below $1.3120, with suggestions that interest came from an Asian sovereign, with a US black box fund providing the lift to $1.3145 as the data came in stronger than that rumoured. Reported offers in the area between $1.3145/50 provided the counter with rate settling back around $1.3130 into Europe. Offers remain at $1.3145/50 with stops above, a break to open a move toward $1.3166 (38.2% $1.3381/1.3033). Talk in Asia of stops placed around $1.3190 but if triggered expected to meet stronger sell interest placed above $1.3205 ($1.3208 50%). Further offers then noted into $1.3250. Support remains on approach to $1.3100, a break to allow for a deeper pullback toward $1.3080/70. German trade and French IP the early interest ahead of more Fed speak.
EasyForexNews Research Team