Closed in NY at $1.2570, off recovery highs of $1.2587 as risk was given a boost on market chatter of global stimulus plans. Rate initially squeezed down to $1.2565 before getting a fresh lift on release of stronger than forecast Australian employment data. However, despite the decent demand, and the tempting target of stops placed above $1.2600, the rate struggled ahead of the NY high, topping out at $1.25859 as it met straight EUR/USD sales, along with EUR/AUD selling. Rate drifted lower through the balance of the overnight session, touching a low of $1.2557, trading around $1.2564 into early Europe. Markets remain on headline watch for direction, the current risk on tone awaiting some confirmation of risk aid for Spain. Fed Bernanke testifies to US lawmakers at 1400GMT and seen as the key event of the day, overshadowing several senior EU/ECB officials. Offers remain in place from $1.2585 through to $1.2600, with stops above. Further stops noted above $1.2630 and $1.2650. Support seen toward $1.2550, more at $1.2530/20.
EasyForexNews Research Team