Rate closed in NY Monday at $1.3140, just off NY afternoon recovery highs of $1.3148 seen after a stop driven move. Rate nudged up to mark Asia highs at $1.3145 in opening trade before rate turned lower, with talk emerging of decent sell interest building into the $1.3150 area. Rate drifted lower through the overnight session, driven mainly by profit take sales, before it met demand placed into $1.3100 which cushioned the move at $1.31061. Rate was holding toward the lower end of its overnight range into early Europe, currently around $1.3113. Stronger demand seen into $1.3090 with stops below, a break to expose stronger demand interest in the area between $1.3075/50. Below here and support seen into $1.3030. Resistance $1.3150, $1.3165/70 stops with further offers emerging from above $1.3175 through to $1.3215. Larger stops noted on a break of $1.3220. EMU inflation data due at 0900GMT along with Germany ZEW (most expect a lower reading), ahead of US housing data 1230GMT and IP and Cap Ut at 1315GMT. Spanish bill auction early focus at 0840GMT, though a precursor for Thursday’s bond auction.
EasyForexNews Research Team