Closed in NY at $1.2873 after recovering through the session from a low of $1.2835 into a late high of $1.2875. A late recovery attempt on Wall St provided tentative risk appetite into early Asia, and with Asian equity markets opening positive prompted short covering that lifted the rate to an early extended recovery high of $1.2878. A drop back to $1.2867 bounced as Japanese trust banks bought yen crosses (euro-yen and Aussie-yen mentioned) which took euro-dollar to session highs of $1.2892. Reported sell interest placed from above $1.2890, and said to extend to $1.2910, provided a hurdle to further upside progress and eased rate back between $1.2870/80 before picking up a fresh bid tone into early Europe, the rate currently trading around $1.2885. Spain preliminary budget report for 2013 is due for release around 1200GMT and will be watched, though attention to quickly turn to Friday’s Spain bank stress test results. Data interest provided by Germany employment at 0755GMT ahead of ECB M3 at 0800GMT and EMU confidence data at 0900GMT with US GDP at 1230GMT. Bids $1.2835/25.
EasyForexNews Research Team