Closed in NY at $1.2943 after extending its recovery off the week’s opening lows around $1.2880 through the day to a high of $1.2947. The dollar retained its underlying soft tone through Asia, with Wednesday’s FOMC and Thursday’s BOJ policy decisions in focus, with euro-dollar able to mark overnight lows at $1.2929 before picking up demand that took it on to $1.2962, the break of $1.2950 adding to upside momentum. A dip to $1.2946 attracted another round of buying with rate retesting overnight highs into Europe. Offers are reported between $1.2970/80. Germany ZEW data to provide this morning’s interest at 1000GMT, with Spain’s bill auction just ahead at 0930GMT. FOMC and Fiscal Cliff resolution hopes expected to underpin the renewal in risk on outlook. Above $1.2980 and rate can edge on to $1.3000/10. Support $1.2930/20 ahead of $1.2900 and $1.2885/75.
EasyForexNews Research Team