Closed in NY Monday at $1.3382, off the rate’s late recovery high of $1.3395 after rate had seen a sell off to $1.3336 earlier in the US session as markets adjusted positions ahead of Monday evening’s Fed Bernanke speech. Rate eased to $1.2372 in early Asian dealing before edging back to $1.3394, the move up mainly driven by euro demand via the crosses (euro-yen, euro-Swiss and euro-Aussie the stand out interest). However, upside momentum quickly faded again ahead of $1.3400 with rate reversing to a low of $1.3349 in afternoon Asian trade, led by a reversal in euro-yen as market reacted to comments from the Japanese economy minister suggesting that excessive yen weakening could impact on livelihoods. Rate recovered to $1.3365 before settling between $1.3350/60 ahead of the European open. Fed Bernanke last night was seen as signalling more of the same, though cautiously optimistic. Data calendar sees Germany 2012 CPI and GDP at 0700/0800GMT respectively, EZ trade at 1000GMT, with US retail sales at 1330GMT seen as the main focus.
EasyForexNews Research Team