Rate opened in Asia around $1.2526, easing off a late Wednesday recovery high of $1.2545 after posting session lows of $1.2508. Early CTA name sales squeezed rate to extended lows of $1.2518 before EUR/JPY demand into the Tokyo open countered and edged the rate to $1.2533. Upside momentum quickly faded with rate then drifting back to $1.2523, though traders did note North Asian demand interest emerging into the pullback from around the $1.2525 area. Markets in Asia were generally subdued following on from the US July4 holiday, , though with a slight risk off bias, with market focus turning toward today’s rate decision from the ECB. Most expect some easing in the interest rate though forecasts split between 25bps and 50bps, with attention seen on action in the deposit rate. Asian traders report offers in place from above $1.2570, adding that more reside from $1.2610 with interest dotted up to $1.2610. Bids remain in place between $1.2510/00, with option related interest noted lower down at $1.2460/50. Ahead, ECB rate decision at 1245GMT and Greek PM Samaras meets the Troika at 1000GMT.
EasyForexNews Research Team