Closed Monday’s North American devoid session at $1.3352, the rate having seen a range of $1.3322-79 during the day, recovering off a late dip to $1.3333 into the close. Rate initially spiked to $1.3365 in early Asia before dropping back to mark lows at $1.3339 before it slowly recovered through the Asian afternoon to settle around $1.3350 into Europe. Trade in euro-dollar was basically sidelined in Asia, more interest seen in yen and Aussie as markets awaited Minutes from their respective central banks. No real surprises from the Minutes, the RBA possibly less dovish than some had hoped. ECB Draghi comments Monday, again noting the impact a strong currency can have on growth, could have some negative effect on the euro into Europe, with a returning US later may also highlight these comments. However, rate currently seen settled into a range with demand in the area between $1.3325/00 cushioning the base in recent sessions, while offers $1.3380/00 provide the initial upside hurdles. EU Almunia, Barnier, Rehn and Steinbrueck are due to speak in Brussels from 0715GMT. Spain sell 3-mos, 9-mos bills at 0930GMT, with EZ construction data, along with Germany ZEW, due at 1000GMT to provide the morning interest.
EasyForexNews Research Team