Closed in NY at $1.3061 after rate had pulled back from an early NY recovery to $1.3080 to $1.3046 before recovering into the close. Rate reversed into early Asia, slipping to an overnight low of $1.3039 (just shy of Wednesday lows at $1.3037 as position adjustment ahead of today’s ECB rate decision/press conference looked to pare back euro longs. The move down was given added weight as the strong release of Chinese trade data boosted the Aussie dollar across the board, with sales of euro-Aussie keeping recovery efforts in euro-dollar capped around $1.3050. Rate had settled between $1.3042/47 into Europe. Most expect no change at today’s ECB meeting, though interest will be focused on the following press conference for clues to future action, with source comments after the last meeting suggesting some had favoured a rate cut. Traders note that the bid interest that had supported the rate between $1.3040/00 has been toned down, one Asian trader though noting that bids are now seen between $1.3030/00, more below $1.2995 with decent sized stops building below $1.2975. Resistance $1.3050/55, $1.3080 and $1.3095/00.
EasyForexNews Research Team