Closed in NY at $1.2452, the rate recovering off a late pullback low of $1.2425 in line with US equities. A continuation of this recovery faltered as Moody’s announced a downgrading of Austrian banks, then six German banks. on both announcements rate dipped to $1.2440, meeting decent demand interest at this level before pushing higher. Release of stronger than expected Australian GDP data provided a boost to risk, though sales of EUR/AUD provided a partial counter as EUR/USD was pulled higher by the rally in AUD/USD. Once the EUR/AUD sales faded the rate was able to move through $1.2500, despite supply seen from two Asian sovereign names, with Russian buying cited for the move above $1.2510 (76.4% $1.2542-1.2410) as rate extended recovery to $1.2516. Rate holds above $1.2500 into early Europe. Offers now seen from $1.2520 through to $1.2550 with stops above. The $1.2440 demand remains in place with system and IMM stops below. ECB rate decision at 1145GMT seen key, along with Draghi’s press conference at 1230GMT. EU GDP and Germany IP data of note ahead of announcement.
EasyForexNews Research Team