Closed in NY at $1.2958, just off pullback lows of $1.2956 after rate had been pressured lower through the end month fixings on expected flows. Rate squeezed down to $1.2952 in early Asian trade, as traders probed for stops. Rate recovered to $1.2969 as market positioned for China PMI, the rate coming in at the expected level of 50.2 prompted some paring back of these spec longs that took rate back to retest the early lows. However, demand placed into $1.2950 again cushioned with recovery from here, aided by euro-yen demand, able to lift the rate to a session high of $1.2971. Release of HSBC China PMI showed improvement but fell short of forecast level and prompted a paring back of risk, euro-dollar drifted back to $1.2956 before picking up fresh demand ahead of the European open. Rate was last trading around $1.2965. Bids remain to $1.2950, more from $1.2930 through to $1.2900. Stronger demand at $1.2885/80 with decent stops below to $1.2860. Resistance seen between $1.2970/80 with intraday traders reported to have placed stops through $1.2985/90. Stronger offers $1.3010 through to $1.3025.
EasyForexNews Research Team