Closed in NY at $1.3488 after rate had made two attempts to take out option barrier interest at $1.3500, with rate finding support during the session at $1.3460 on pullbacks. Asia kept focus on the barrier interest with trade through the overnight session contained by $1.3485/95, with traders noting major Asian sovereign sell interest encountered in the $1.3490’s. Talk in Asia notes the oft mentioned $1.3500 barriers but add that the big one could be sitting behind at $1.3505. Large stops are noted on break of this latter level, the area between $1.3505/10. Rate opens Europe around $1.3488. Traders have suggested that early Europe could attempt the $1.3500/05 area, a break of $1.3505/10 to expose take profit offers sitting between $1.3510/25 (suggestion of another barrier at $1.3525). If this sell interest is taken out then seen opening a move toward $1.3550 (barrier). Support seen at $1.3485/80 ahead of $1.3460/50. Spain GDP at 0800GMT, EMU confidence indicators at 1000GMT provide the morning data interest ahead of US ADP and Q4 GDP at 1315/1330GMT, but this evening’s FOMC announcement 1915GMT to overshadow (though most do not expect any major policy change).
EasyForexNews Research Team