Closed in NY at $1.3158 after rate had recovered back from session lows of $1.3122 to $1.3168. Rate touched an early overnight high at $1.31605 before continuing its corrective pullback, the rate easing to an eventual low of $1.3136 before settling back above $1.3140 into the European open. Trade through Asia was again seen subdued with main action seen in Aussie and Kiwi as the Japanese markets were closed for the completion of their Golden Week holidays today and tomorrow.Focus today turns toward the ECB rate decision (no change expected) and the following press conference. Recent weak employment and growth data has market looking for dovish comments from Draghi, but with collective wage bargaining continuing in Germany at the moment he will be caught between the two. Ahead of the ECB we will have bond auctions from Spain and France to provide the morning interest. Bids remain into $1.3120, with talk Wednesday that $1.3110 holds barrier interest. Further demand seen into $1.3100 with stops below, a break opening a deeper move toward $1.3080/75 ($1.3075 barrier). Resistance noted at $1.3160/70.
EasyForexNews Research Team