Closed in NY at $1.3063, after rate had seen lows of $1.3037, with moves through Fed Bernanke’s testimony mainly driven by euro-yen reaction. The recovery extended to $1.3070 into Asia only to get pressed down to $1.3042 post Tokyo fix as euro-yen sellers emerged. Fresh demand cushioned the base and allowed rate to recover through the early high, pushing on to an overnight high of $1.3074. Momentum faded on approach to $1.3080, the rate then drifting off to $1.3052 but bounced back to $1.3070 ahead of Europe as Asian traders reacted to Italian press reports suggesting Grillo had softened his stance and was looking at coalition prospects. Germany Import/export prices along with Germany GfK due up at 0700GMT with EZ M3 due at 0900GMT. EZ confidence indicators then due at 1000GMT, along with the Italian bond auction (traders expect domestic demand to support this). US durable goods data follows at 1330GMT, then US housing data at 1500GMT. Asian traders report demand placed from $1.3030 through to $1.3000, noting interest from at least two Asian sovereign names, but stops also mixed in below $1.3010. CTA stops mentioned through $1.2990/85. Resistance seen at $1.3070/80, $1.3100 ahead of stronger interest at $1.3120/25.
EasyForexNews Research Team