Closed in NY Tuesday at $1.3580, off late Europe highs of $1.3598 after rate had spiked higher on a story suggesting current strength of the euro will not play a part in Thursday’s ECB rate decision. Rate continued the consolidation, seen through the NY afternoon, between $1.3570/95, into the Asian morning and the early part of the afternoon, before early Europe broke rate under $1.3570 to $1.3561, with rate holding heavy at writing. Moves in Asia were driven by euro-yen, the Japanese currency extending recent losses as the cross extended recent gains to Y127.71 (dollar-yen made a show above Y94.00) in early trade before correcting back toward Y127.00 ahead of Europe. Focus on ECB rate meeting and following press conference Thursday, no change widely expected but interest to be on Draghi’s pointers to future direction. For today Germany factory orders due at 1100GMT to provide interest. Support seen back at $1.3560, a break and clear to open a deeper move toward $1.3525/20 ahead of stronger interest into $1.3500. Resistance remains toward $1.3600, a break to open a move toward $1.3635/40.
EasyForexNews Research Team