Closed in NY at $1.6073 after rate eased off traded highs at $1.6085 to $1.6067. Rate eased to retest that NY pullback low but again
found support here. Rate then edged to $1.6073 before dropping back to $1.6065 as market probed for stops. Willing buyers met the dip and took rate to $1.6080 but momentum quickly faded and allowed rate to ease off to $1.6069. Euro-dollar got a late session spike higher as it reacted to Spain headlines on possibility of asking for ECB aid, the move taking cable to extended highs of $1.6086. Rate then settled back around $1.6077 into Europe with the recent underlying buoyant tone remaining in place. All focus on this morning’s German Court verdict on ESM, a positive outcome expected, which should boost risk appetite, though any conditions attached will be analyzed. A clear of $1.6085 to open a move toward $1.6100, a break here to then look toward $1.6140/60. Support seen back at $1.6065 ahead of $1.6050 with stops below. Next support $1.6025/20 ahead of $1.6000/1.5990. UK jobs data at 0830GMT provides domestic interest, with FOMC Thursday keeping dollar under pressure.
EasyForexNews Research Team