Closed in NY at $1.2332 after settling back following its rally extension to $1.2374. Rate crept up to $1.2337 in early Asia before Tokyo sales of EUR/JPY squeezed rate down to $1.2325, retesting the NY lows at this level which cushioned the move. Rate bounced as EUR/AUD demand re-emerged (was a main driver in the euro’s recovery Monday), pushed up to $1.2349 before meeting resistance into $1.2350. Rate settled between $1.2340/50 into the Asian afternoon before a major French name emerged as a strong buyer ahead of the European open to take it up to $1.2356. Rate currently holds firm, trading around $1.2355. Focus this morning will be on the Q2 GDP releases in France (0530GMT) and Germany (0600GMT), ahead of Eurozone GDP at 0900GMT. Germany ZEW is also due at 0900GMT and could a react if out of line with expectations. US retail sales at 1230GMT seen key into afternoon business. Trade in Asia was again reported to have been subdued with euro cross plays providing the main drive. Tech resistance $1.2362, a break to expose $1.2374 with offers noted from this level to $1.2385. Bids $1.2325/10.
EasyForexNews Research Team