Closed in NY at $1.2230, off post FOMC inspired lows of $1.2218 after the Fed disappointed markets with no new measures announced. Rate extended its recovery into early Asia to $1.2245 as early traders reacted to a report in Sueddeutsche Zeitung suggesting the ECB today will unveil a two pronged plan to support the euro. However, this early optimism quickly faded with rate slipping back to retest the NY lows at $1.2218 before edging higher again. S&P affirming Germany’s AAA rating, with outlook stable, provided the lift to take rate through $1.2245, aided by Japanese demand for EUR/JPY. Rate touched a high of $1.2257 before easing back to $1.2245 into early Europe. All focus will be on the ECB policy announcement at 1145GMT, with the press conference following at 1230GMT. Following the apparent disappointment with the FOMC markets will be waiting to see if ECB Draghi can announce plans that will support his recent comments which boosted market optimism toward the euro. Reactivation of SMP widely forecast. Bids $1.2218/00. Stops $1.2180 through $1.2170. Offers$1.2260, stronger $1.2290/00.
EasyForexNews Research Team