Closed in NY Wednesday at $1.3523, the rate having extended its corrective pullback off Wednesday’s Asian highs of $1.3597 to $1.3496, recovering to $1.3544 before easing again into the close. A fairly subdued start in Asia with rate holding around $1.3520 before it got pressed down to $1.3505 ($1.3506 76.4% $1.3494-1.3544). Rate met demand placed into the figure which cushioned the move prompting spec shorts, that had positioned for stops below $1.3494 to cover back ahead of the European open which edged rate up to $1.3532 ($1.3535 76.4% $1.3544-05). Rate was trading around $1.3528 into Europe. ECB rate decision with the accompanying press conference, the latter seen providing the main interest as rates expected to remain on hold. Traders will look for any change in Draghi’s perceived hawkish tones at the last meeting, expecting him to turn more cautious on economic growth and more relaxed on the inflation outlook. Ahead of this Spain and France bond sales at 0930GMT/0950GMT and Germany industrial production data is due for release at 1100GMT. US weekly claims at 1330GMT will provide a sideshow to ECB Draghi though not to be ignored.
EasyForexNews Research Team