Closed in NY at $1.2280 after recovering from session lows of $1.2217 to session highs of $1.22878. The upside correction was seen
driven on a mix of Asian sovereign, leveraged and macro demand, the latter two seen covering shorts/profit taking. Rate continued its late NY drift, marking lows into early Asia at $1.2275 before a US name emerged as a strong buyer, though only managed to get rate up to $1.2297 before momentum faltered. Rate then settled around $1.2290 through the balance of the session, opening Europe around $1.2287. One Asian trader has reported into Europe receiving from an official name around the $1.2289 level. Focus this morning on Spanish (0830GMT) and French (0900GMT) bond auctions. US jobless claims and Phila Fed move into view during the afternoon. Euro-dollar continues to be seen in an outside range of $1.2150-1.2350, with option protection of a $1.2150 barrier cushioning downmoves of late in the $1.2190/60 area, while traders look to enter shorts on approaches to $1.2350. Offers this morning above $1.2300, with stops noted through $1.2305/10. Support $1.225.
EasyForexNews Research Team