Closed in NY at $1.2835, just off session lows of $1.2822 seen following the release of stronger than forecast US employment data. Early NZ/Sydney took advantage of thin conditions to probe for stops below the NY base, with triggered selling taking the rate to lows of $1.2808 before profit take demand edged rate back above $1.2820 into the main Asian session. Fresh demand emerged in the $1.2815/10 area, with stops then began to build in the $1.2810/00 area. Rate edged on to $1.2840 on Goto-Bi day demand for euro-yen into the Tokyo fix, but this recovery proved short lived as market turned its attention to a euro negative WSJ story suggesting the ECB was reconsidering E80bln of held Spanish bills used as loan collateral. Euro-dollar sank back to $1.2816 before fresh demand emerged to allow rate to drift back above $1.2830 ahead of the European open. An interesting week ahead, though today’s calendar reasonably light (Spain unemployment 0800GMT, EU Sentix 0930GMT, with US non-mfg ISM at 1330GMT). US election Tuesday with ECB, BOE and RBA all due to meet. Offers $1.2840.
EasyForexNews Research Team