Closed in NY at $1.2303 after rate had recovered from lows of $1.2270 to $1.2330 in this session (Europe morning low $1.2249). Rate
marked highs into Asia at $1.2305 before continuing to slip lower, meeting initial support into $1.2290. Release of weaker than forecast China PMI data provided the added weight to take the rate to session lows of $1.2281. Rate recovered to $1.2295 as HSBC China PMI data showed improvement, with rate settling between $1.2290/95 ahead of the European open. Focus for today seen on the US FOMC policy announcement at 1815GMT, an extension of low rates into mid 2015 expected by some. Ahead of this major Eurozone manufacturing PMI data begins at 0743GMT from Italy. However, range trading within $1.2220-1.2350 expected to continue ahead of the key ECB policy decision Thursday. Bids remain into $1.2280/70 with stronger interest noted below $1.2250 (Tuesday low $1.2249). Resistance reported between $1.2300/05 ahead of $1.2320/30, with further offers noted into $1.2350.
EasyForexNews Research Team