Closed in NY at $1.2960 after easing back from recovery highs of $1.2984, having seen lows into Tuesday’s Europe open of $1.2886. Demand for euro-yen into early Asia provided some early lift, allowing rate to edge to session highs of $1.2969 before Tokyo sold back into the speculated risk-on move at their open. Euro-dollar eased to $1.2955 before it settled within a tighter range of $1.2957-66. Rate seen trading around $1.2960 into Europe. Germany retail sales data due for release at 0700GMT to provide early interest with hopes that the reopening of NY markets today will liven up activity, though the aftermath of the devastating hurricane Sandy expected to restrict access to downtown Manhattan and the financial district. Offers seen in place from around Tuesday’s high at $1.2984, with interest seen dotted toward $1.3000, with talk of stronger sell interest placed above. Initial support seen around $1.2950/45 ahead of main demand at $1.2925/20, more into $1.2900 ahead of stronger interest at $1.2885/80. Asian sovereigns have been dollar buyers overnight and could buy euros for balancing.
EasyForexNews Research Team