Closed in NY at $1.2828, holding firm into the close (ahead of today’s Thanksgiving holiday) after recovering off intraday lows (Asia, Europe $1.2755) at $1.2736. Strong demand for euro-yen into early Asian trade provided the early lift into the session which took euro-dollar to extended highs of $1.28685, helped by the triggering of stops through $1.2835 and $1.2850, with risk getting a boost on release of stronger than forecast HSBC China mfg PMI, making a show back above 50.0. Macro accounts were noted profit take sellers above $1.2860, with the initial pullback meeting demand in the area between $1.2850/40. A brief squeeze to $1.2834 encountered fresh demand with rate recovering to $1.2850 ahead of the European open. Offers now reported between $1.2875/95, with more placed into $1.2900 linked to option barrier protection here. US Thanksgiving holiday expected to act to subdue trade through the day, especially into the afternoon as liquidity should dry up. Eurozone flash PMI’s from the major economies this morning’s interest from 0758GMT to 0858GMT. Support $1.2835/25.
EasyForexNews Research Team