Opened early Europe at $1.2493, closed in NY Tuesday at $1.2495 after recovering from a session low $1.2442, pressured on comments suggesting German Chancellor Merkel had ruled out joint euro bond issuance for the foreseeable future. The pair ground lower in early Asian trade to $1.2480 before lifting through $1.2500 to session highs of $1.2505 on Asian reserve manager demand. Dealers again reported of light volumes with trade stuck in a tight 30 pip range ahead of the EU leaders summit at the end of the week. The pair continued into Europe on a quiet theme with trade stuck in a tight $1.2481 – $1.2503 range. A reported large $1.2500 option expiry for the 1400GMT cut seen as the main factor. Support seen on the downside at $1.2480 from sovereign names, a break opens demand into $1.2470, ahead of $1.2450/40 with stops set. Resistance seen from the Asian high at $1.2508, ahead of offers from macro names at $1.2520.
EasyForexNews Research Team