Closed in NY at $1.2796 after recovering from an intraday low of $1.2767, but below its 200-dma at $1.2830 (today coming in at $1.2828 and offering key resistance). The rate’s recovery extended to $1.2803 in early Asian trade before sellers emerged to press rate down to lows of $1.2782. Recovery was aided as the Australian dollar was boosted on the back of RBA’s no rate change, when a wide range of forecasters were calling for a 25bp cut. Euro-dollar pushed back toward $1.2800 but failed to break above, settling between $1.2784/94 ahead of the European open. Today’s US election will provide background colour, though results not due until early Wednesday. Eurozone services and composite PMI’s due for release this morning from 0813GMT (to the Eurozone release at 0858GMT) ahead of EMU PPI at 1000GMT and German factory orders at 1100GMT. While euro-dollar holds below its broken 200-dma level it will be seen adding to the current underlying negativity, though recent dollar demand on positioning for a Republican Romney win could unwind if Pres.Obama gains a second term.
EasyForexNews Research Team
