Closed in NY at $1.2979 after recovering off a corrective pullback low of $1.2945 and having seen an intraday high of $1.3015 in late Europe. Rate initially eased down to $1.2970 in early Asia, as rate took direction from early macro sales of Aussie, only to meet decent demand linked to euro-yen and euro-Aussie demand. Rate recovered through its opening level and pushed up to an eventual high of $1.3007. Rate drifted off on mild profit take sales only to meet fresh demand into $1.2990 and edging back to retest the earlier highs into Europe. End of month demand for US dollars has been linked to offers placed between $1.3015/20 with talk this morning of stops above. A break here to open a move on toward $1.3040/50 and $1.3070. German corporate sell interest was linked to these latter two areas Thursday. Bids remain in place into $1.2970, stronger between $1.2945/40. Fiscal Cliff negotiations remain the key driver, though set backs seem to be eventually overcome by the underlying demand interest for the euro.
EasyForexNews Research Team