Closed in NY Friday at $1.3343, after rate had been pressured to a session high of $1.3366 on reaction to the wider than forecast US trade deficit. Rate eased to $1.3335 ahead of the Asian open but move quickly picked up fresh demand that took it back to $1.3366. A brief pullback to $1.3353 again met willing buyers, the demand this time taking the rate through the NY high and to $1.3404. The move up was given added momentum as euro-yen moved through barrier interest at Y120.00, with barriers at $1.3400 also taken out. Upside momentum quickly faded above the figure, with long covering ahead of the European open allowing rate to drift back to $1.3385/80. Talk of minor sell interest remaining in place above $1.3400, though offers strengthen into $1.3420 (middle east mentioned). Stronger offers then seen placed ahead of next barrier at $1.3450. Support $1.3385/80, $1.3355/50. EZ IP at 1000GMT the main morning focus, disappointment here could provide some counter to the recent euro rally, though US Fed Bernanke speech at 2100GMT seen key. For the week, US retail sales Tuesday seen as the stand out interest.
EasyForexNews Research Team