Closed in NY at $1.2530 after rate settled around this area through late afternoon trade following a late recovery rally to $1.2549. Rate had earlier been repulsed from $1.2565, trading to session lows of $1.2518. Rate initially edged to $1.2537 in early Asia before turning lower as rate reacted to the paring back of risk, led by sales of Aussie dollar. Rate touched a low of $1.2523 before meeting bid interest, talk in Asia of decent demand back in place around $1.2520, with rate then able to recover to around $1.2540. A dip to $1.2534 was quickly reversed as the rate got a boost from comments by China’s premier Wen that China is willing to invest in European bonds. Euro-dollar traded to a high of $1.2548, holding above $1.2540 into Europe. Jackson Hole and comments ahead of the ECB Sep 6 meeting remain in focus. Speculation of QE3 seems to be pared back with Bernanke expected to use the Symposium to finesse recent comments, while Draghi’s no show due to heavy work load keeping hopes high that the ECB is preparing its ‘big bazooka’ to aid Eurozone debt. Bids $1.2520/00, stops $1.2500-490. Offers $1.2560, $1.2580/00.
EasyForexNews Research Team