Closed in NY at $1.2932, just off recovery highs of $1.2937 after rate had seen lows in this session of $1.2891. Rate drifted down to $1.2929 in early Asia before demand emerged to edge rate up to pressure reported stops through $1.2940/50. Some corporate supply was also seen in the area between $1.2945/50 but the demand from US and UK names allowed rate to push on to $1.2953 before momentum faded. Risk tone was given an early boost on the back of positive S&P futures, though Asian equity markets were seen mixed. Rate drifted back to $1.2932 before settling around $1.2935/40 into Europe. The dollar was seen under pressure across the board, with dollar-yen able to extend its recent slippage below Y77.80, though Tokyo traders have warned of possible official action ahead of half year end (Citi suggest buying Y77.70/60). German GfK provides early interest (0600GMT) following on from Monday’s disappointing Ifo, with ECB Draghi due to speak during the morning will keep market headline watching. Euro-dollar offers seen above $1.2965, heavier above $1.3010. Bids remain into $1.2890.
EasyForexNews Research Team