Closed in NY at $1.3321 after rate had recovered off lows of $1.3278 to $1.3327 into the close. Rate was contained within a $1.3310/30 range in early Asian dealing, the rate retreating from a challenge on $1.3330 to ease below its early support to post session lows at $1.3305 before settling between $1.3310/15 ahead of the European open. Asian traders noted decent sell interest seen back in place above $1.3330, adding that bids in the area between $1.3305/00 belong to CTA accounts. Main downside stops now seen on a break of $1.3270, with short entry interest also noted should this level give way. A fairly light data calendar, French business indicators due at 0745GMT to provide the morning interest. Speakers at Davos could prove influential, Japan’s Economic and Fiscal Policy minister Akira Amari of note and possible effect on euro-yen. Traders also note that Goldman Sachs have changed their euro-dollar forecast to $1.40 flat over the next 3-mos and 6-mos from $1.25 and $1.33 respectively.
EasyForexNews Research Team