Closed in NY at $1.3003 after easing off a session high of $1.3015. A fairly subdued trading session through Asia with the rate consolidating Tuesday’s recovery between $1.3000/14 for most of the session, making a late session low at $1.2997 before settling around $1.3000 ahead of the European open. This afternoon’s FOMC policy decision remains in focus, with Fiscal Cliff discussions continuing to bubble away in the background. Risk remains in favour and seen helping to buoy euro-dollar. German and French CPI due up in early Europe ahead of EMU IP at 1000GMT, with any comments emanating out of the ECOFIN banking supervision conference to be of interest. Offers remain in place between $1.3015/20 with stops above, a break to open a move toward $1.3030/35 ($1.3031 61.8% $1.3127-1.2876) ahead of $1.3050 and $1.3070/80 ($1.3068 76.4%). Support seen at $1.2980/70, more at $1.2950/40.
EasyForexNews Research Team