Closed in NY at $1.2605 and marked session highs at $1.26083 before easing below $1.2600 on light trade, with traders noting that main weight came from Tokyo sales of EUR/JPY suggested in turn to be linked to bund redemptions of around E27bln. Rate drifted to a low of $1.2582. Initial recovery efforts were thwarted around the $1.2590 as EUR/AUD sales countered, but the release of strong Australian retail sales data lifted AUD/USD and took EUR/USD back toward $1.2600. Rate struggled to gain a toe hold above and settled back between $1.2585/95 into European trade. US holiday expected to make for continued subdued markets, with ECB rate decision Thursday and US employment data Friday looming on the horizon. Eurozone services and composite PMI releases from 0743GMT ahead of EMU retail sales at 0900GMT the morning’s interest. Offers seen placed above the figure through to $1.2610 with stops above, a break here to open a move toward $1.2650 with traders reporting offers stacked above (through to $1.2690). Bids noted below $1.2580, with stops placed on a break of $1.2545.
EasyForexNews Research Team