Opened in Asia at $1.2969 after the rate had seen corrective pullback lows in European trade Monday at $1.2938, following its correction off post US NFP data react highs of $1.3072 Friday. Early trade into Asia was seen steady between $1.2965/70 before returning Japanese accounts showed decent demand for euro-yen. Rate tracked euro-yen’s rise, touching an initial high of $1.2987 before meeting fund supply. Rate eased off to $1.2976 before picking up fresh demand that saw it bounce up to $1.2988 ($1.2989 38.2% $1.3072-1.2938). Slow drift off this high seen ahead of the European open, the rate currently trading around $1.2982. Germany Merkel arriving in Athens today could prompt some reactive comment, with ECB Draghi due to speak at 0630GMT at the European parliament. A light data calendar, releases that there are not normally market moving. A break above $1.2990 to open a move toward $1.3000/05 ahead of $1.3020/25. Support seen at $1.2965/60 ahead of $1.2938 (61.8% $1.2804-1.3072 and Monday low). Alcoa earnings data begins the US earnings season. IMF forecast revisions seen as expected.
EasyForexNews Research Team